TC to introduce fee for new lenders wef 1 January 2018
Dec 2, 2017 8:48:08 GMT
elliotn, DeafEater, and 2 more like this
Post by pikestaff on Dec 2, 2017 8:48:08 GMT
TC have announced that they will be introducing a 1% fee for new lenders, for accounts opened on or after 1 January 2018. Existing investors will be exempt. Details are in their December newsletter, here: www.thincats.com/news/thincats-newsletter-december-2017/
If you have been thinking about joining TC, but never quite got round to it, there would seem to be a brief window of opportunity to open an account. It would be best to get it done before Christmas, though. I will be surprised if they process applications between Christmas and the new year.
The announcement does not say that you need to have actually invested funds before the new year
.
Lender fees are tax inefficient for individuals, and they could have raised the money by increasing borrower fees instead. I think they have done it this way for two reasons: (1) to exempt existing lenders, and (2) more generally, to support the possibility of different fees for different types of lender, eg discounts for institutional lenders.
I would also infer that TC see their future growth being mainly in a combination of (1) institutional lending and (2) individual lending via tax free IFISAs.
If you have been thinking about joining TC, but never quite got round to it, there would seem to be a brief window of opportunity to open an account. It would be best to get it done before Christmas, though. I will be surprised if they process applications between Christmas and the new year.
The announcement does not say that you need to have actually invested funds before the new year
.Lender fees are tax inefficient for individuals, and they could have raised the money by increasing borrower fees instead. I think they have done it this way for two reasons: (1) to exempt existing lenders, and (2) more generally, to support the possibility of different fees for different types of lender, eg discounts for institutional lenders.
I would also infer that TC see their future growth being mainly in a combination of (1) institutional lending and (2) individual lending via tax free IFISAs.