benaj
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Post by benaj on Dec 18, 2017 15:22:57 GMT
According to Ratesetter, rates are being offered from 6.9%Here comes the big question, why does the market rate fluctuate so much daily? like 2.9%, much lower than the rate being offered to borrowers? |
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benaj
Member of DD Central
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Post by benaj on Dec 19, 2017 17:15:26 GMT
Borrrower's offer: £128,740.74 @ 4.9% on 1 year ( 2017-12-19 17:07)
I wonder what the actual rate Ratesetter is being lent. Since borrowing starts from 6.9%
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jonah
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Post by jonah on Dec 19, 2017 20:14:38 GMT
Borrrower's offer: £128,740.74 @ 4.9% on 1 year ( 2017-12-19 17:07) I wonder what the actual rate Ratesetter is being lent. Since borrowing starts from 6.9% Wait a month an look in the updated loan book. If you can find a match it will tell you. I say 'if' as that could be part of a large loan etc.
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sapphire
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Post by sapphire on Dec 20, 2017 18:05:19 GMT
According to Ratesetter, rates are being offered from 6.9%Here comes the big question, why does the market rate fluctuate so much daily? like 2.9%, much lower than the rate being offered to borrowers? In theory, according to this blog post: www.ratesetter.com/blog/article/the_way_we_calculate_the_market_rate_is_changingRS uses a weighted average based on the previous day. I think a number of passive investors leave the reinvestment rate set to a lower rate....when their contracts mature this would mean that the reinvestment occurs at the lower rate. This would drag the weighted average down....RS in order to maximise their profits makes use of these lower rate offers to the maximum possible extent and then use other lenders as needed to match demand....the actual "cut-off" rate where the demand and supply can be matched will fluctuate depending on the daily demand and supply levels.
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TheDriver
Member of DD Central
Slightly bonkers
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Post by TheDriver on Dec 28, 2017 16:54:32 GMT
I was looking to see where the daily Market Rate figure was published, but all I can find referenced is the "Lend right now" figure which leads me to suspect that what actually happens on renewal in those cases is a race to the botton via that process. I have enquired to RS via the "contact us" form, but no response as yet.
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Post by bobthebuilder on Dec 29, 2017 1:12:05 GMT
I was looking to see where the daily Market Rate figure was published, but all I can find referenced is the "Lend right now" figure which leads me to suspect that what actually happens on renewal in those cases is a race to the botton via that process. I have enquired to RS via the "contact us" form, but no response as yet.
Try this link: members.ratesetter.com/ratesetter_info/rate_trends.aspxThe 'Download Market Rates' section is towards the bottom of the page.
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