vmail
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Post by vmail on Jan 11, 2017 20:29:29 GMT
Do you still accrue interest until the loan is sold? I'm thinking its probably best to leave FS.
I've listed loans on SM and they have not sold. I don't think the SM on FS is quick
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Post by mrclondon on Jan 11, 2017 20:38:50 GMT
Do you still accrue interest until the loan is sold? I'm thinking its probably best to leave FS. I've listed loans on SM and they have not sold. I don't think the SM on FS is quick Yes, the accrued interest (which the buyer pays for as a capital premium) is increased every day at midnight. Over the xmas/new year period of lower supply of new p2p loans (across all platforms) the FS SM supply of loan parts that are fairly priced for purchasers who are basic rate tax payers has shrunk to just a handful remaining (less than 20 loan parts in just 6 loans by my analysis a short while ago). As a rough rule of thumb you need to price with a 0.1% discount for every 15 days age of the loan part to cover the basic rate tax liability the buyer is taking from you.
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elliotn
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Post by elliotn on Jan 12, 2017 5:49:17 GMT
And then add on quite a bit more discount for taking on all of the seller's default risk.
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mikes1531
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Post by mikes1531 on Jan 12, 2017 21:41:16 GMT
Inasmuch as the subject here is interest and the SM, I'll bring up a related issue. I don't know whether this is an issue unique to me or whether it is more widespread...
I have noticed that when I put a part up for sale there's often a difference between the number of Days Active shown for the part on my list of parts (either in My Investments or in my list of the parts I have for sale) and when it appears on the list of all parts for sale in a given loan. For instance, I have a £50 part of 9631725522 for sale which shows within my account as being active for 149 days, yet that part shows as being active for only 148 days on the list of all the parts of 9631725522 that are for sale. I presume that when FS go to calculate the price a buyer would have to pay, they'll include just 148 days' worth of interest, and I'll lose the interest associated with the 149th active day.
I can see what I'd have to pay to buy any parts being sold by others, but I don't know of any way to see what someone actually would have to pay for the parts I'm selling. Is there a way to find this out other than 'phone a friend'? I can see what the price ought to be from my list of the parts I have for sale, but I can't tell if that's actually the price being offered to others, and it might not be the same because the number of active days on the two pages are different.
It wouldn't be so bad if the difference in Days Active between the two displays were randomly different. Unfortunately, they're not. When there is a difference, the page shown to buyers always seems to show less active days than what I'm told is correct.
Does anyone else here see a similar discrepancy on any of the parts they have for sale?
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mikes1531
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Post by mikes1531 on Jan 13, 2017 3:46:49 GMT
Further to the above, the part of 9631725522 I had for sale sold later in the day, and I do seem to have lost a day's interest. Within my account this part was showing as having £2.86 of accrued interest (149 days' worth). And on my list of parts for sale, it was showing the Sale Price as £52.36 after the 1% discount. When it sold, however, I received only £52.34, which means I received only £2.84 of interest (148 days' worth). I have sent an email to fundingsecure regarding this, but it's still important for us to know if the problem is unique to me or whether it is more widespread. I realise that the discrepancy on this part is only tuppence, and normally I wouldn't worry about an error of that magnitude, but if FS have a systemic problem it needs to be found and fixed. Hopefully, having this example and knowing the time of the sale will allow FS to identify the specific loan part involved, work out what's going wrong, and fix it. |
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vmail
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Post by vmail on Jan 13, 2017 11:19:44 GMT
Sold £100.00 of investment in loan 1447116747 13/01/2017 08:25 £0.00 +£102.84
Investment into loan 1447116747 06/11/2016 21:24 -£100.00 £0.00
Mine looks ok, 69 days at 15% = 2.835616438
rounded up to £2.84
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jan 14, 2017 8:32:10 GMT
I've just put up for sale 2 loan parts which have both been active for 155 days (That's what it shows in My Investments). However, on the SM one of them shows as active for 155 days and the other for 154 days. They are both for the same loan and even the same amount.
By looking through the loan "Investments tab" I believe I bought them both on the PM on day one, and probably within one hour of each other.
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mikes1531
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Post by mikes1531 on Jan 14, 2017 11:38:54 GMT
I've just put up for sale 2 loan parts which have both been active for 155 days (That's what it shows in My Investments). However, on the SM one of them shows as active for 155 days and the other for 154 days. They are both for the same loan and even the same amount. By looking through the loan "Investments tab" I believe I bought them both on the PM on day one, and probably within one hour of each other. : Thanks for the info. That's exactly the problem I've observed for my parts, so the issue is not unique to me. I'd suggest that you report this directly to fundingsecure, since I don't now how closely they're following this thread. I've had no reply to my email to FS so far.
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mikes1531
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Post by mikes1531 on Jan 27, 2017 16:44:06 GMT
Firstly, I've had no response at all from my email to FS reporting the problem I noted two weeks ago in this thread. Today I came across a different problem that may be related to the previous one. Perhaps FS are working on a solution to the first issue and this new problem is a consequence of changes already made. I thought I understood how the Effective Rates are calculated on the FS SM, but that went out the window when looking at the website today. I came across a couple of examples of inconsistency which have confused me completely. I've highlighted in red on the attachment a couple of cases where a pair of parts of the same size, with the same number of Days Active, and being offered at identical discounts, are showing different Effective Rates. I can't understand how that is possible. fundingsecure: Can you please explain?  |
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stub8535
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Post by stub8535 on Jan 27, 2017 17:13:08 GMT
Active days and days the original buyer has held the loan part are not the same. I have a deeper query than this ongoing that I will report on in due course.
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mikes1531
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Post by mikes1531 on Jan 27, 2017 18:14:14 GMT
Active days and days the original buyer has held the loan part are not the same. I have a deeper query than this ongoing that I will report on in due course. : In what way?
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mikes1531
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Post by mikes1531 on Feb 12, 2017 4:00:57 GMT
The first response I received when I raised the issue with fundingsecure was... That was on 3/Feb, and I've heard nothing further. |
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09dolphin
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Post by 09dolphin on Feb 12, 2017 5:39:24 GMT
As someone who pays a basic rate of tax I wouldn't normally touch the SM. The risk you are taking is huge based on recent results and I've yet to see a discount which compensates for tax liabilities and the additional risk. I agree tax liabilities are covered but the additional risk of non payment isn't.
This seems to me to be a market best left to people who pay a marginal rate of tax rather than people who pay basic rate.
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stub8535
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Post by stub8535 on Feb 12, 2017 10:48:38 GMT
Active days and days the original buyer has held the loan part are not the same. I have a deeper query than this ongoing that I will report on in due course. : In what way? I have not forgotten your question. You will not be surprised to hear that I am STILL waiting for the FS response.
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stub8535
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Post by stub8535 on Feb 12, 2017 10:50:35 GMT
Active days and days the original buyer has held the loan part are not the same. I have a deeper query than this ongoing that I will report on in due course. Have you had a reply on this yet?  www.fundingsecure.com/myaccount/secondary-market/8790976060Just looked at this page on the SM. Every £25 part (despite a small variation in active days) comes up at a price of £26.01 yet almost all have a different indicative return. Great if your part is at the top and appears to be a better deal, but not so great for everyone else at the same price. I tried doing the same using larger parts where possible, and they all came up the same too, so it doesn't appear to be due purely to rounding. Not yet @leopardcat
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