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Post by wickedxuk on Aug 19, 2016 21:34:35 GMT
The wording in the FAQ wrt the fee charged states:
"BondMason charges 1% p.a. of the amount you have invested through our platform - your "AUA" - assets under administration. This is calculated on a daily basis, and is paid directly from the interest and capital repayments you receive."
I'm assuming this is a mistake? To clarify, is the fee 1% of the interest generated or 1% of amount invested?
I've signed up but won't be depositing funds for a while until I'm ready.
Can someone clarify please?
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fp
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Post by fp on Aug 19, 2016 21:56:30 GMT
I believe it is 1% of invested funds, and not the total in your account, i.e. if you have any money in your BM account, but it is not yet invested in any products, then you do not pay any fee on that money
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
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Post by Neil_P2PBlog on Aug 19, 2016 22:52:43 GMT
Why is it a mistake? It would be impossible for them to make a living out of 1% of 8%.
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Post by wiseclerk on Aug 20, 2016 8:52:45 GMT
wickedxuk , I think the wording is pretty straightforward. Based on how I interpret it here is an example. Assume you deposit 10,000. And 9,000 of it is invested at 8%. The fee is then (for the duration of one year) 90 (1% of 9,000). Note that 1% of the interest would be only 7.20 (1% of 8% of 9000). In practise it is a little more complex, as the "AUA" will likely fluctate and as it is calculated on a daily basis, but with the figures above you'll get the big picture stevefindlay can please correct me if my example is trash.
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Post by wickedxuk on Aug 20, 2016 9:50:57 GMT
Thank you wiseclerk, however I sincerely hope that 1% of £9,000 is not £900! 😉 £90 maybe? Thank you, I know it seemed straightforward and was a pretty stupid question but it's just a different way of implementing a fee that I hadn't seen before. I just wanted to be sure. |
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Post by wiseclerk on Aug 20, 2016 9:53:54 GMT
whoops, corrected
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Post by stevefindlay on Aug 22, 2016 14:37:49 GMT
wiseclerk - yes, you are correct (and thank you also to fp and Neil_P2PBlog for their responses, and wickedxuk for the question!). Fees: our fees are charged daily, on the amount you have invested through the platform, at a rate of 1.0% p.a.: If you have: - sent £11,000 - have £10,000 allocated every day for the year (which would not be very good deployment on our part...) - interest of £800 at the end of the year Your total BondMason fees would be £100 for the year. Your net return would be £700.
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Post by wickedxuk on Aug 22, 2016 15:05:53 GMT
stevefindlay thank you for the further clarification. Much appreciated.
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Post by doorway on Sept 6, 2016 11:45:55 GMT
Have you any facility for early repayment ?
When do you hope for an ISA wrapper ?
(I hope I have been brief I do not mind a brief reply) !
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Post by wickedxuk on Sept 6, 2016 14:14:12 GMT
Have you any facility for early repayment ? When do you hope for an ISA wrapper ? (I hope I have been brief I do not mind a brief reply) ! Hi doorway I think BM do offer a repayment option but its not instant and is based on availability of another lender been allocated your loans. I'm sure stevefindlay can help with that and an update of their FCA permission status and potential IFISA wrapper?
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Post by stevefindlay on Sept 6, 2016 19:43:29 GMT
doorway - thank you for the questions ( wickedxuk - thank you for the answer!): "early repayment" - Clients can request to liquidate their positions and withdraw funds at any time. Whilst there is no guarantee over liquidity and timing; we've been able to fully liquidate and return funds in 3 days or less in every case to date. Our initial expectation was a little more conservative than this (please see this post) "IF ISA" - we are waiting on the FCA for this. Our initial application was submitted in December 2015, and in theory it should be reviewed and approved before December 2016; but they are inundated with applications to process at present. If you send your email address to invest@bondmason.com; then we can notify you as soon as our IF ISA product is ready. I'm sorry we can't be more precise about the timing.
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jonah
Member of DD Central
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Post by jonah on Sept 24, 2016 7:32:55 GMT
wiseclerk - yes, you are correct (and thank you also to fp and Neil_P2PBlog for their responses, and wickedxuk for the question!). Fees: our fees are charged daily, on the amount you have invested through the platform, at a rate of 1.0% p.a.: If you have: - sent £11,000 - have £10,000 allocated every day for the year (which would not be very good deployment on our part...) - interest of £800 at the end of the year Your total BondMason fees would be £100 for the year. Your net return would be £700. Did you decide about the fees on any lans which are in default? I.e. Are those fees still charged or not?
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Post by wickedxuk on Oct 3, 2016 8:46:01 GMT
wiseclerk - yes, you are correct (and thank you also to fp and Neil_P2PBlog for their responses, and wickedxuk for the question!). Fees: our fees are charged daily, on the amount you have invested through the platform, at a rate of 1.0% p.a.: If you have: - sent £11,000 - have £10,000 allocated every day for the year (which would not be very good deployment on our part...) - interest of £800 at the end of the year Your total BondMason fees would be £100 for the year. Your net return would be £700. Did you decide about the fees on any lans which are in default? I.e. Are those fees still charged or not? only just seen your post jonah. Good question, worth a response stevefindlay
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Post by stevefindlay on Oct 3, 2016 15:15:21 GMT
And I've only just seen it too - not sure why it slipped the net. Currently, we don't charge fees for loans in default (but we reserve the right to back date the fee if we achieve full recovery) - i.e. our fee won't exacerbate any loss.
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