benaj
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Post by benaj on Feb 7, 2018 10:17:16 GMT
This morning on 5 year market:-
3.8% matched on 10:01 2018-02-07.
Why would someone settle 3.8% for 5 years when average rate for last 12 months on 5 year is 5%
meanwhile, 4.4% matched on 09:44
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ashtondav
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Post by ashtondav on Feb 7, 2018 10:57:06 GMT
DUMB money. I just love it, as it means less competition for the smart money that goes for 5.9%+...
On the other hand I lend on rolling at 3.8%, and that’s being lent out for five years, so in melt down I guess I could be lending at 3.8% in 5 year market!
Maybe I would be better/no worse lending at 5.9% in five year and cashing in when I need the dosh, and paying the (last time I looked) 2% costs/fees. Ideas?
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jlend
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Post by jlend on Feb 7, 2018 13:08:13 GMT
DUMB money. I just love it, as it means less competition for the smart money that goes for 5.9%+... On the other hand I lend on rolling at 3.8%, and that’s being lent out for five years, so in melt down I guess I could be lending at 3.8% in 5 year market! Maybe I would be better/no worse lending at 5.9% in five year and cashing in when I need the dosh, and paying the (last time I looked) 2% costs/fees. Ideas? The sell out is much better than it use to be in the 1 and 5 year markets now. You simply pay a fee of 0.3% in the 1 year or 1.5% in the 5 year of the amount you wish to withdraw at any time. Gone are the old complicated calculations. members.ratesetter.com/noticeboard/simplifying_early_access_to_invested_money
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Post by caveman38 on Feb 7, 2018 18:51:27 GMT
Thanks for that useful info. I shall have to keep more up to date. With a more generous penalty on cashing in, I think it's worth lending a bit more.
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jlend
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Post by jlend on Feb 7, 2018 20:02:03 GMT
Thanks for that useful info. I shall have to keep more up to date. With a more generous penalty on cashing in, I think it's worth lending a bit more. The Ratesetter noticeboard is quite useful for keeping up with changes. They usually drop a note on there for anything they think is significant. There are some broken links on there which I've pointed out to them several months ago which I am sure will get fixed at some stage.
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ashtondav
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Post by ashtondav on Feb 7, 2018 23:19:16 GMT
1.5% on 5year is quite a stiff penalty...
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Post by GSV3MIaC on Feb 8, 2018 8:25:05 GMT
Nowhere near at stiff as it previously was though, especially in the last couple of years.
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benaj
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Post by benaj on Feb 8, 2018 9:33:02 GMT
The sell out fee is better for 5 year, it was 1.9% before. There is a catch regarding withdrawal. In my case, I can only withdraw 36% of the amount invested in the 5 year market at the moment. Even if I wish to withdraw 100% and pay a fee, I have to wait till the end of contract or someone repay the entire loan early. 100% withdrawal on Rolling / 1 year can be done without issue. Any thoughts?
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jonah
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Post by jonah on Feb 8, 2018 22:10:03 GMT
Loans with less than 10 in them can’t be exited via selling out as RS can’t relent them. Could that be it?
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benaj
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Post by benaj on Feb 9, 2018 10:08:55 GMT
Loans with less than 10 in them can’t be exited via selling out as RS can’t relent them. Could that be it? I only have 17 loans on 5 year, so far only 1 loan has less than 2 months remaining, others has at least 12 months remaining.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Feb 9, 2018 11:08:44 GMT
Thanks for that useful info. I shall have to keep more up to date. With a more generous penalty on cashing in, I think it's worth lending a bit more. The Ratesetter noticeboard is quite useful for keeping up with changes. They usually drop a note on there for anything they think is significant. There are some broken links on there which I've pointed out to them several months ago which I am sure will get fixed at some stage. Second para speaks volumes. I was almost tempted to invest.
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jlend
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Post by jlend on Feb 9, 2018 11:18:39 GMT
The Ratesetter noticeboard is quite useful for keeping up with changes. They usually drop a note on there for anything they think is significant. There are some broken links on there which I've pointed out to them several months ago which I am sure will get fixed at some stage. Second para speaks volumes. I was almost tempted to invest. The last time I asked them they said they were prioritising the new Isa
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sl75
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Post by sl75 on Feb 20, 2018 8:30:09 GMT
Loans with less than 10 in them can’t be exited via selling out as RS can’t relent them. Could that be it? I only have 17 loans on 5 year, so far only 1 loan has less than 2 months remaining, others has at least 12 months remaining. It's the total balance outstanding that is important - any loan with less than £10 capital balance remaining cannot be sold at RateSetter. As such, it can be better to make "chunkier" loans initially if there's a chance you may wish to liquidate later.
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