ashtondav
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Post by ashtondav on Apr 13, 2019 13:33:02 GMT
Oh, yes, bad debt alright. Gross interest was about £2,800. Fees and bad debt brought down to the £1,500 level
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ashtondav
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Post by ashtondav on Apr 13, 2019 11:09:07 GMT
Most of the 5% - 10% is dodgy. That’s why you can’t sell it! Anything from one missed payment to a full default. But the returns are quoted after defaults.
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ashtondav
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Post by ashtondav on Apr 13, 2019 10:03:24 GMT
My tax statement shows about £1,500 net interest on about £30,000 invested so about 5%. Not the 7% I signed up for.
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ashtondav
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Post by ashtondav on Apr 12, 2019 14:14:20 GMT
But get tax relief on any losses when crystallised, which you wouldn't have got if they defaulted while in the ISA. Swings and roundabouts. Isn't the tax relief in the form of a capital loss, so is only any use if you make realised capital gains over the tax-free limit elsewhere (which is unlikely for most)? Yes, but that's a one off. You lose interest on £10K compounding at say 6% tax free in RS for life, because you can't sell the loans and transfer the proceeds - not all of "unsellable" loans are defaults.
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ashtondav
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Post by ashtondav on Apr 12, 2019 7:36:20 GMT
I think it applies to all isa investments. Say you transferred £100k from an s&s isa to a Zopa ISA a few years back. You now wish to transfer your Zopa ISA to RS. Zopa sell your “sellable” loans and transfer the funds to RS. The “unsellable” loans are transferred into a non isa Zopa account.
In this case, if 10% of the loans were in difficulty you lose the tax free benefits on £10k.
Are you saying that Zopa retains the £10k of unsellable loans in your Zopa ISA? If so, presumably they would transfer the funds as and when loans could be sold, but I don’t think that’s how it works.
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ashtondav
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Post by ashtondav on Apr 11, 2019 8:42:40 GMT
This started before the tax year. Do you think significant money was put on for 2018/9?
Certainly the recent reduced lending has paid a part, the 28 day averaging has lead to an irresponsive market from a significant proportion of money added to the market (the Mr Money). Forget >5.9% for the next month in my opinion. Yearly has been more volatile and could have responded, but I don't know how much money will be used from rolling market to delay any recovery.
- PM It's to be expected that many people will topup their end of tax year amounts to ensure they get full cover of the 20,000 allowance as well. You get even more cash drag at RS if you want 6.5%...
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ashtondav
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Post by ashtondav on Apr 11, 2019 8:39:25 GMT
Hang on, won’t the liquidation of the FC Investment Trust create a lot more supply, and increase selling times, or will their holdings be offlifted to the often mentioned new “institutional investors”. And if those institutional investors are so flush with cash and keen on FC why aren’t they grabbing all the supply posters here are talking about.
Confused!
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ashtondav
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Post by ashtondav on Apr 10, 2019 16:53:20 GMT
You simply request RS to transfer the isa from Zopa to RS. You don’t lose any tax benefit!
You do lose the benefit if you withdraw the money from the Zopa isa and then open a RS isa.
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ashtondav
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Post by ashtondav on Apr 9, 2019 12:08:29 GMT
Thanks. I was confused because on my dashboard it deducts bad debt before showing me my annualised return and on the tax statement it doesn't. I had forgotten about the 2015 decision.
BTW I am now down to an annualised returned of 5.6%
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ashtondav
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Post by ashtondav on Apr 9, 2019 11:51:38 GMT
I presume i deduct "total eligible bad debt" from "income payments to you" to arrive at the net interest to report on my SA tax return, as an individual taxpayer.
Is that correct?
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ashtondav
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Post by ashtondav on Apr 7, 2019 18:00:27 GMT
FS.
The pawn broker that issues loans without sight or custody of assets.
You couldn’t f*****g make it up...
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ashtondav
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Post by ashtondav on Apr 7, 2019 9:37:54 GMT
Not me. The incompetence is breathtaking. And even if that incompetence applies to a minority of loans it displays a lack of skill that is alarming in a pawn environment when you only get your wedge back at the end of the term - plus a few months!
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ashtondav
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Post by ashtondav on Apr 6, 2019 16:14:09 GMT
The queue for 6.5% for 5 years is £4.4million. Back to LW for now! Yep, once again the “dumb money” is flooding the market. and yes withdrawing from the holding account and off to LW. I’ll be back in summer....
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ashtondav
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Post by ashtondav on Apr 5, 2019 16:32:39 GMT
Ratesetter: when will vehicle Stocking Limited be filing its accounts? They should have been filed on 31st December last year. Naughty, very very naughty....
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ashtondav
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Post by ashtondav on Apr 5, 2019 9:34:42 GMT
I take your point, but clearly the range was only ever considered a mid-term objective. They will have had the approach of a PF Fund event much more seriously as they did in the past when lending to the PF and buying major defaulting borrowers / arrangers, so I don't think the comparrison is that appropriate. Personally I have always believed that a PF Event is inevitable one day and likely in any significant recession. I would like to know how they would operate in this scenario. The most straight forward approaches are likely to see a collapse of the business. In the early days tey admitted that it would be the end of RS, but that was when the cash fund was 170%+ of expected defaults!
In addition, a key lever they have used to escape issues is the sale of defaulted loans. But we have not received any info on this and so cannot estimate the defaulted loans currently held by the PF and hence the possible funding available from this route.
I think that RS would do everything in their power not to have to declare a ratio anywhere near 100%. IMO a ratio below 100% (or even close to it) would cause a run on RS that would be difficult for them to survive. All bar the quickest to react would be stuck in RS waiting for repayments and recoveries. I should declare that I'm already withdrawing from RS, mostly because I don't like their modus operandi. I'm not concerned enough about their latest obfuscations and ratios to warrant paying the exit fees. So definitely not suggesting that there is any need to panic yet. I'm happier to lend on what are generally considered (though not necessarily by me) higher risk platforms, particularly where they have a well functioning variable SM. They provide the ability to exit, albeit at a price, in times of trouble/need, as others will see a discount as an opportunity for a higher gain to be worth the risk. Just airing a alternative point of view. As always, don't risk what you can't afford to lose on non FSCS protected investments. Ace, are you instead favouring the platforms in your signature. Asking because RS seems to me to be a more stable platform than many of them.
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