stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Feb 12, 2017 13:00:40 GMT
To elaborate. My query is to do with parts purchased from the underwriter and a statement made in terms and conditions that would mean double payment of interest. I established that there is no marker to show a loan used an underwriter or not when renewed. Impacts on active and accrued days.
Awaiting an answer. Have chased FS today.
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447
Likes: 945
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Post by stub8535 on Feb 12, 2017 13:02:48 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. This is down to the loan parts having been put on sale on different days. Check the calculation of effective rate on the website secondary market page. A denominator uses days left in the calculation.
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mikes1531
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Post by mikes1531 on Feb 14, 2017 19:44:02 GMT
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. This is down to the loan parts having been put on sale on different days. Check the calculation of effective rate on the website secondary market page. A denominator uses days left in the calculation. : I don't think that's the explanation. Yes, the calculation uses the days remaining, so a part of a given size that's put up for sale today will show a different effective rate today than a part put up for sale tomorrow will show when it's first put up for sale. However, the effective rate for the part that's put up for sale today will have its effective rate recalculated when midnight comes and tomorrow arrives. Someone who looks at the SM tomorrow will see effective rates that all should be based on the same number of days left because that's a characteristic of the loan so that all loan parts of that loan have the same number of days left. As I indicated in my earlier posting... The first response I received when I raised the issue with fundingsecure was... ... it looks like FS have identified the problem but need to work out how to resolve it.
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