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Post by xordon on Apr 15, 2014 13:44:46 GMT
I think more micro loans would change hands if people did not put stupid rates. There is one loan at the moment with about 5 month to run and all the sellers are expecting people to take a loss on micro loan purchase. Seller gets 4%, purchasers rate is 3% or less. There are even ones where the purchasers AER is negative.
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Post by jackpease on Apr 16, 2014 13:52:10 GMT
I'm dipping my toe in Rebuilding Society given logjam of 12 no-drawdown loans on Assetz - 25% of my portfolio! Just to save me stretching my brain - on RbS if a microloan headline rate is (say)14%) and the seller's premium is 5% am i getting 9% or 14%? thanks jack
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Post by bengilbert on Apr 16, 2014 15:03:33 GMT
The interest rates shown on the secondary market are the interest rates you'll actually get (plus you get the whole month's interest at the next repayment, even if you only bought the unit the day before).
A 5% premium on the price will change the interest rate you get differently depending on how long is left on the loan - if there's only a short while left, it could push the effective interest rate right down, whereas if there's a long time left, it won't make such a big difference. But you don't need to work that out yourself, the site does it and shows the effective rate when you look at the units for sale.
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Post by xordon on Apr 17, 2014 8:37:53 GMT
I think RbS should not allow negative microloans. They just clog the system as who in their right mind is going to bail the seller out at a higher percentage than the loan has left. The buyer has to at least break even. I can see microloans today where the seller gets 5% and the buyer get -0.8%. That should not be allowed. The seller should have the microloan sale cancelled and get an email telling them why.
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Post by danraj on May 7, 2014 0:10:07 GMT
Just a quick note to say we've removed microloans with a buyer rate of sub 5%.
We'll be making the management of microloan sales easier on the dashboard in the coming weeks.
Please do keep the suggestions coming.
Dan
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Post by jackpease on May 7, 2014 6:10:35 GMT
>>>>Please do keep the suggestions coming.
If it hasn't been said before, it is critical to have one's own existing exposure alongside the microloans to help the buying decision. eg a 'my existing exposure' column as on other platforms
Thanks, Jack
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Post by danraj on May 13, 2014 22:39:35 GMT
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