|
|
Post by stuartc on Dec 6, 2014 23:50:58 GMT
I'm a bit confused. If you buy a loan part for a loan that has been running for s few months, how will you get paid back the full amount?
|
|
|
|
Post by goldservice on Dec 7, 2014 7:54:06 GMT
Welcome! You will get back the full amount that you have paid (plus interest at the original rate for that part). But you will not get back the full amount of the loan part - some of that has already been paid back to the previous owner(s) of the part. And you will not get back any premium that you paid.
|
|
|
|
Post by GSV3MIaC on Dec 7, 2014 9:34:33 GMT
And, confusingly, you don't see the original rate for the part until after you buy it (and even then you can only see it if you go to resell it at 0% premium). The rate you see ('buyer rate') is the real original rate adjusted to recover the premium/discount over the remaining life of the loan. Oh yes, truncated to one decimal place too.
|
|
|
|
Post by stuartc on Dec 7, 2014 9:52:24 GMT
Thanks for those quick replies, I can see now that if I want to sell one of my loans that started at £20 in 2013, that the sale price is around £7 for example. You would have thought the starting price might have been shown as well, then I might have understood it!
|
|
|
|
Post by GSV3MIaC on Dec 7, 2014 11:26:14 GMT
Yes, the original loan part value is one of the things which is actually quite hard to work out, given the info FC make available .. you can get there, but it isn't easy - you need to know loan term, amortisation (for property loans, where it isn't the same as the term), current value, etc. and then work back.
|
|
