ceejay
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Post by ceejay on Oct 5, 2017 16:18:09 GMT
... so I saw that the rates on the 1 year market were looking promising, and speculatively chucked in a grand at 5%.
Sure enough, today I get a "matched" message: great, except that when I look I see it's been matched against a 4 week contract. I know that "1 year" doesn't always mean a year, and that early redemptions are possible, but I have to say this is irritating. I've had quite a lot of bundles of money set against the 1 year contract before, but never anything this short.
If I'd wanted to have to deal with this again in a month, I'd have put it on Rolling.
Is this a frequent occurence?
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Post by newlender on Oct 5, 2017 20:25:41 GMT
I bought one yesterday and I get repaid on December 13th. I'm trying to get a monthly income for the next few years and am taking out yearly contracts with the aim of cashing them in each month when I finally retire. But this kind of thing makes it virtually impossible to plan ahead properly.
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mary
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Post by mary on Oct 6, 2017 6:18:56 GMT
I've seen a few short contracts, but less than 2%.
Unfortunately, being repaid early is far more common (in 1 year market).
Of contracts that I placed upto September 16, which have now obviously all ended, ~30% repaid early.
Of contracts placed since October 16, ~50% have repaid early.
Therefore my monthly income has varied wildly, which is not what I was aiming for.
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Post by davee39 on Oct 6, 2017 8:16:38 GMT
I bought one yesterday and I get repaid on December 13th. I'm trying to get a monthly income for the next few years and am taking out yearly contracts with the aim of cashing them in each month when I finally retire. But this kind of thing makes it virtually impossible to plan ahead properly. With a fixed sellout fee of 1.5% it might look attractive to go for 5 yrs,depending on the premium over 1yr, with benefit of interest and repayments being made monthly. Takes a bit more work - I log in daily to reinvest or withdraw depending on rates and need for cash.
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09dolphin
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Post by 09dolphin on Oct 6, 2017 12:10:53 GMT
... so I saw that the rates on the 1 year market were looking promising, and speculatively chucked in a grand at 5%. Sure enough, today I get a "matched" message: great, except that when I look I see it's been matched against a 4 week contract. I know that "1 year" doesn't always mean a year, and that early redemptions are possible, but I have to say this is irritating. I've had quite a lot of bundles of money set against the 1 year contract before, but never anything this short. If I'd wanted to have to deal with this again in a month, I'd have put it on Rolling. Is this a frequent occurence? I saw a good rate today and threw in some money. Ratesetter says it takes 4 hours for a payment to be credited when using instant payment. WRONG. Today it took over 4 hours as experienced by myself and even worse A supervisor is dismissive of the fact it takes more than 4 hours.
If Ratesetter can't deliver on crediting accounts with money exactly what can they be trusted to deliver??
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Post by newlender on Oct 6, 2017 14:45:05 GMT
There is a big difference between Zopa and RS when it comes to crediting faster payments. Zopa is usually within the hour, RS much longer. Although RS does process withdrawals fastest - next day, usually. Why not keep a healthy balance in your RS Holding Account in order to catch the good rates? Probably a shrewd move if you factor in the extra profit on the better rates.
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mary
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Post by mary on Oct 6, 2017 15:00:42 GMT
There is a big difference between Zopa and RS when it comes to crediting faster payments. Zopa is usually within the hour, RS much longer. Although RS does process withdrawals fastest - next day, usually. Why not keep a healthy balance in your RS Holding Account in order to catch the good rates? Probably a shrewd move if you factor in the extra profit on the better rates. If you deposit via debit card (£1000 min to avoid fees) then your account is credited instantly and you can catch the latest rate being offered immediately!
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Post by newlender on Oct 6, 2017 15:46:48 GMT
That's interesting to know. Must admit I've never done it as I tend to believe the 'faster' part of faster payment  . Might give it a whirl next time. |
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am
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Post by am on Oct 7, 2017 0:00:49 GMT
I bought one yesterday and I get repaid on December 13th. I'm trying to get a monthly income for the next few years and am taking out yearly contracts with the aim of cashing them in each month when I finally retire. But this kind of thing makes it virtually impossible to plan ahead properly. With a fixed sellout fee of 1.5% it might look attractive to go for 5 yrs,depending on the premium over 1yr, with benefit of interest and repayments being made monthly. Takes a bit more work - I log in daily to reinvest or withdraw depending on rates and need for cash. RS have now changed the sellout fee to something non-punitive. But unless I've missed something there's still the interest rate adjustment on sale which could lead to a significant capital loss if prevailing interest rates have increased since the date of the loan.
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wapping35
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Post by wapping35 on Oct 7, 2017 9:44:24 GMT
With a fixed sellout fee of 1.5% it might look attractive to go for 5 yrs,depending on the premium over 1yr, with benefit of interest and repayments being made monthly. Takes a bit more work - I log in daily to reinvest or withdraw depending on rates and need for cash. RS have now changed the sellout fee to something non-punitive. But unless I've missed something there's still the interest rate adjustment on sale which could lead to a significant capital loss if prevailing interest rates have increased since the date of the loan. Take care, that sell out fee change comes into effect from Nov 2 so not quite "now".
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Post by BrianC on Oct 7, 2017 11:31:42 GMT
I actually see short contracts on the 1 year as a benefit I’d not previously been aware of. I don’t like tying my money up too long but after reading this if I’m investing repayments and the one year market is giving a much better rate than rolling I might now start using it. I could need my money at any time within 3 months (might move house in the next year) so there’d be every chance I’d get my 1 year contracts paid early enough or soon the sellout fee will be only 0.3%.
The early repayments and low sell out fee make the 1 year market just like an alternative rolling market. Works for me!
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Post by newlender on Oct 7, 2017 12:51:14 GMT
Careful with what you wish for! 94% of my contracts are due to pay out in 12 months after I bought them, although I haven't calculated my % of early repayments.
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ceejay
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Post by ceejay on Oct 7, 2017 19:45:35 GMT
What's that they say? "Fool me once, shame on you: fool me twice, shame on me."
I couldn't resist it. Saw the one year rates were high, had some spare cash, so plonked it down at 5%. Again.
This time, not 4 weeks - two months.
Seriously not impressed: I offered the money for a year, not wanting to have the hassle of dealing with it again for that time.
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. Might give it a whirl next time.