lara
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Post by lara on Jul 2, 2018 18:50:45 GMT
Is the new rolling market rate lending actually working? My account has continued to lend at the rate I set before the change. Yes - it's the repayments (ie interest plus a tiny amount of capital) that is being reinvested at 'your' rate. The remaining capital remains at the original rate. You mean the repayments are invested at market rate surely?
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oik
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Post by oik on Jul 2, 2018 19:18:49 GMT
The idea seems to be getting increasingly wacky.
When I looked in the early hours, new orders were being matched at up to 3.5%, which is relatively high by recent comparisons: end of month, and perhaps because so much money has been pulled. When they eventually released my repayments a few hours later they auto-placed it at 3.3%, a level that by then looked unlikely to be achieved and still there tonight. So how long will it sit there uninvested, a day, a week, next month. What will those simple souls that Ratesetter told us were confused by the old system make of that?
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Post by yorkman on Jul 2, 2018 21:30:31 GMT
Yes - it's the repayments (ie interest plus a tiny amount of capital) that is being reinvested at 'your' rate. The remaining capital remains at the original rate. You mean the repayments are invested at market rate surely? No I mean they are invested in whatever you want them to be invested at. The trick is to send them to holding first and then invest them at your rate.
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Post by paultw5 on Jul 2, 2018 21:34:55 GMT
I'm a complete novice with all this P2P stuff, but when my cash is automatically re-invested at 2.6 early in the morning and then a few hours later 3.3 is being taken easily, then somethings not quite right...2.2% matched last week as well...
I'm then told by customer services that i will be better off..What a complete load of cobblers, and for that reason i'm withdrawing my wonga...
Rant over...thank you
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lara
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Post by lara on Jul 2, 2018 21:46:03 GMT
You mean the repayments are invested at market rate surely? No I mean they are invested in whatever you want them to be invested at. The trick is to send them to holding first and then invest them at your rate.
But that's the problem (or one of them anyway) with this new system, only the interest can be set to go to holding, the small capital repayment is auto reinvested at market rate (unless you happen to be on the ball enough to catch it and change the rate before it is matched). From the memo
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jo
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Post by jo on Jul 3, 2018 7:23:54 GMT
RateSetter are just lucky that no company in the history of financial services has ever got into trouble by lending long and borrowing short. Oh no, wait....
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dandy
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Post by dandy on Jul 3, 2018 8:19:34 GMT
RateSetter are just lucky that no company in the history of financial services has ever got into trouble by lending long and borrowing short. Oh no, wait.... ... but RS do not lend and RS do not borrow. We do. Otherwise I take your point
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robski
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Post by robski on Jul 3, 2018 11:50:45 GMT
Rates seem to be steadily climbing as to be expected when supply is lower
Suddenly around £2.5M appears to peg rolling at 3% for some time.
Despite many claiming RS used to manipulate rates I always thought it was possible to get round this (and i was never convinced they were really that successful anyway) enough to pretty much nullify their attempts (although auto investors at market rate would be caught)
Now however I feel they are actively manipulating
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jlend
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Post by jlend on Jul 3, 2018 12:15:48 GMT
Rates seem to be steadily climbing as to be expected when supply is lower Suddenly around £2.5M appears to peg rolling at 3% for some time. Despite many claiming RS used to manipulate rates I always thought it was possible to get round this (and i was never convinced they were really that successful anyway) enough to pretty much nullify their attempts (although auto investors at market rate would be caught) Now however I feel they are actively manipulating The 2.6m is thousands of capital and interest repayments around month end pay day from borrowers. The 3 percent is the market rate set from lend orders yesterday.
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jlend
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Post by jlend on Jul 3, 2018 12:17:21 GMT
RateSetter are just lucky that no company in the history of financial services has ever got into trouble by lending long and borrowing short. Oh no, wait.... ... but RS do not lend and RS do not borrow. We do. Otherwise I take your point RS do sometimes lend their own money to aid liquidity. They make this clear in their FAQs
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dandy
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Post by dandy on Jul 3, 2018 12:25:57 GMT
... but RS do not lend and RS do not borrow. We do. Otherwise I take your point RS do sometimes lend their own money to aid liquidity. They make this clear in their FAQs I never knew that, thanks. Just seen this FAQ which as you say confirms it. Does RateSetter ever lend through its own Market?
Yes, from time to time RateSetter lends directly into its market in secondary loans to facilitate access to lenders. This is always limited and in no way means that access is any more guaranteed. Facilitate access perhaps, but a clear mechanism to apply direct downward pressure on rates too. A bit like QE
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dorset
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Post by dorset on Jul 3, 2018 13:09:30 GMT
RateSetter are just lucky that no company in the history of financial services has ever got into trouble by lending long and borrowing short. Oh no, wait.... No as has been said its the punters getting locked into five year loans at 2.4% (when the s**t hits the fan) who carry all of the risk.
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robski
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Post by robski on Jul 3, 2018 14:14:29 GMT
... but RS do not lend and RS do not borrow. We do. Otherwise I take your point RS do sometimes lend their own money to aid liquidity. They make this clear in their FAQs I doubt it because it wasn't there earlier today it arrived later on.
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jo
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Post by jo on Jul 3, 2018 15:39:33 GMT
RateSetter are just lucky that no company in the history of financial services has ever got into trouble by lending long and borrowing short. Oh no, wait.... No as has been said its the punters getting locked into five year loans at 2.4% (when the s**t hits the fan) who carry all of the risk. Hence we're voting with our feet (or at least I am). Therein lies the risk to their business of following the above strategy.
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ashtondav
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Post by ashtondav on Jul 3, 2018 15:55:32 GMT
Yep, withdrawing as repayments hit holding. Lend at 2.5% for 5 years? It is negligent behaviour to allow dumb punters to do that.
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