muh3
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Post by muh3 on Feb 15, 2017 17:07:39 GMT
Has anyone spotted the withdrawal fee for the whole amount withdrawn whether uninvested or not? Suposed to be fully flexible allowing you to put in and take out money in the same year. Takes 6.5 down to 5.5 ish for those wanting the wrapper but after higher rates on the platform. You mean 6.0 to 5.0 ish. Also the 6% is a target rate which can be higher.
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pom
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Post by pom on Feb 16, 2017 9:45:38 GMT
Has anyone spotted the withdrawal fee for the whole amount withdrawn whether uninvested or not? Suposed to be fully flexible allowing you to put in and take out money in the same year. Takes 6.5 down to 5.5 ish for those wanting the wrapper but after higher rates on the platform. You mean 6.0 to 5.0 ish. Also the 6% is a target rate which can be higher. Nice to see optimism...
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TheDriver
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Slightly bonkers
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Post by TheDriver on Feb 17, 2017 12:50:21 GMT
I'd guess they're planning on bidding the money at min rate on all the new loans and are quoting 6.5% to account for (some of the likely) losses. They're probably hoping it'll bring the average rates down and make them more competitive with borrowers...I shall look on the bright side and hope it makes the older SM loans look more attractive given it's taking a loooong time to sell my last few parts
In fact it seems the SM might benefit from the opposite effect - ie. direct purchase, given that (according to Ts & Cs) the new funding is expected to be invested within a week, meaning it will mostly have to buy-up existing loan parts.
Additionally, on the subject of withdrawals, as mentioned by stub8535, only cash can be taken out - therefore anything else has to be sold first (presumably at the 0.5% charge), then the 1% fee, effectively meaning a 90-day interest penalty!
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Post by GSV3MIaC on Feb 17, 2017 14:53:25 GMT
I would expect the SM sale fee to be buried in the 1% withdrawal fee, and/or the difference between 6% and the underlying interest rate(s) !! Of course, I could be wrong ... 8>.
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adrianc
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Post by adrianc on Feb 17, 2017 17:13:58 GMT
I'd guess they're planning on bidding the money at min rate on all the new loans and are quoting 6.5% to account for (some of the likely) losses. They're probably hoping it'll bring the average rates down and make them more competitive with borrowers...I shall look on the bright side and hope it makes the older SM loans look more attractive given it's taking a loooong time to sell my last few parts
In fact it seems the SM might benefit from the opposite effect - ie. direct purchase, given that (according to Ts & Cs) the new funding is expected to be invested within a week, meaning it will mostly have to buy-up existing loan parts.
Additionally, on the subject of withdrawals, as mentioned by stub8535 , only cash can be taken out - therefore anything else has to be sold first (presumably at the 0.5% charge), then the 1% fee, effectively meaning a 90-day interest penalty!
No sign of it yet - the two loans I'm still trying to get shot of have gone drastically up in availability... (GH and S******g S****s). There's north of a third of each of 'em sitting on the SM...
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ablender
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Post by ablender on Feb 18, 2017 15:06:02 GMT
In fact it seems the SM might benefit from the opposite effect - ie. direct purchase, given that (according to Ts & Cs) the new funding is expected to be invested within a week, meaning it will mostly have to buy-up existing loan parts.
Additionally, on the subject of withdrawals, as mentioned by stub8535 , only cash can be taken out - therefore anything else has to be sold first (presumably at the 0.5% charge), then the 1% fee, effectively meaning a 90-day interest penalty!
No sign of it yet - the two loans I'm still trying to get shot of have gone drastically up in availability... (GH and S******g S****s). There's north of a third of each of 'em sitting on the SM... GH Dropped from £20405.43 on 11/2/17 to £13977.32 on 16/2/17 and then someone dumped a huge sum to get it back to £34752.08 by 16/2/17 pm. Selling on SM has increased but if we have to keep on being subjected to this dumping (I think this is happening by the same people we have already complained about due to their behaviour on the PM) then we will still have little benefit, if any, from a more liquid SM.
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adrianc
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Post by adrianc on Feb 18, 2017 15:08:48 GMT
No sign of it yet - the two loans I'm still trying to get shot of have gone drastically up in availability... (GH and S******g S****s). There's north of a third of each of 'em sitting on the SM... GH Dropped from £20405.43 on 11/2/17 to £13977.32 on 16/2/17 and then someone dumped a huge sum to get it back to £34752.08 by 16/2/17 pm. Selling on SM has increased but if we have to keep on being subjected to this dumping (I think this is happening by the same people we have already complained about due to their behaviour on the PM) then we will still have little benefit, if any, from a more liquid SM. ...and, because of the utterly opaque nature of the SM, the amount of time our parts have been for sale does not begin to affect the likelihood of their sale.
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Post by GSV3MIaC on Feb 18, 2017 16:01:35 GMT
Because of the utterly opaque nature of the SM, we don't actually KNOW that. 8>.
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ablender
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Post by ablender on Feb 18, 2017 16:37:32 GMT
My concern is that I have observed several times loans which are selling and my part does not sell. Then suddenly there is a bump up. That yes concerns me and I am afraid that my parts are somehow being held back to the benefit of others such as the people who bid extremely low. Although this might not constitute a proof in itself. I think that now I have enough evidence to indicate this. Unless someone (ex. FOS) looks inside we can be prejudiced against without any way to protect ourselves.
But as to the simple matter of SM activity; activity has definitely increased.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Feb 18, 2017 18:22:52 GMT
I would expect the SM sale fee to be buried in the 1% withdrawal fee, and/or the difference between 6% and the underlying interest rate(s) !! Of course, I could be wrong ... 8>. Dave. I specifically asked the questions to establish that the loans would be sold at the 1/2% sm charge and then a 1% withdrawal fee would be applied. So like investment houses and banks that p2p is meant to be disrupting.
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ablender
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Post by ablender on Feb 18, 2017 18:37:14 GMT
I would expect the SM sale fee to be buried in the 1% withdrawal fee, and/or the difference between 6% and the underlying interest rate(s) !! Of course, I could be wrong ... 8>. Dave. I specifically asked the questions to establish that the loans would be sold at the 1/2% sm charge and then a 1% withdrawal fee would be applied. So like investment houses and banks that p2p is meant to be disrupting. I think that LC are killing their own golden-eggs laying goose; if it ever managed to lay any eggs in the first place.
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Post by GSV3MIaC on Feb 19, 2017 15:51:08 GMT
I would expect the SM sale fee to be buried in the 1% withdrawal fee, and/or the difference between 6% and the underlying interest rate(s) !! Of course, I could be wrong ... 8>. Dave. I specifically asked the questions to establish that the loans would be sold at the 1/2% sm charge and then a 1% withdrawal fee would be applied. So like investment houses and banks that p2p is meant to be disrupting. Hmm .. if you are in the automated product I didn't think you had any actual loan PARTS as such to be sold .. hence no 1/2% charge for selling them. I though (I could be wrong!) the FUND had the parts, so the fund takes the 1/2% hit (if it has to sell at all .. maybe someone else is buying in when you are buying out .. anyway, it's money from one LC pocket straight into another one).
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TheDriver
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Post by TheDriver on Feb 22, 2017 12:19:42 GMT
It is fairly clear from the write-up: "We’ll automatically diversify your funds across at least 20 loans through our Loan Market" and "Should you wish to withdraw your funds, you can choose to sell some or all of your loan holdings on our Loan Market." that you have a personal loan-part portfolio, but whether the 1% includes selling those or is just for the actual withdrawal is not clear - although it doesn't mention the current 0.5% selling fee - and if not, whether you could obviate that charge by stopping re-investments.
Plus of course the promise of "full or partial withdrawals at any time." is slightly at odds with "The time taken to access your funds depends on how quickly your holdings are sold." as many here can testify!
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nick
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Post by nick on Feb 22, 2017 13:22:31 GMT
That's a real shame - I was hoping that I would have been able to have an ISA wrapper on my existing investments even if it took a while to sell and trade back in. I was planning to put this year's IFISA into this but won't now because of the inability to select individual loans and operate it in the same way as a normal account. I'm sure the take-up will be a lot lower than what would have been otherwise - what a shame.
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Post by laidbackgjr on Apr 11, 2017 9:54:50 GMT
And it looks like Lending Crowd have listened - just received an e-mail Self Select ISA launching in May.
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