lara
Posts: 345
Likes: 300
|
Post by lara on Jul 3, 2018 16:29:24 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. Agreed! And yet they are boasting about doing just that, like it's a good thing. Unbelievable, really.
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Jul 4, 2018 3:18:50 GMT
I was not a fan of the new system, particularly the way it was promoted and implemented, but am becoming a convert as I work out ways to optimise its functionality, and TBF that contention is not accurate.
I see Rolling as a place to put short term / instant access investment, because you can withdraw funds at no cost quickly, at any time with the usual rider of "replacement funding being available". The fact you are potentially locked into a 5 year contract is no different to previously, just obvious now. If you WANT to commit to 5 years use the appropriate scheme for greater interest.
Consider a case of wanting the money in six months: in Rolling you would continue to get whatever rate you had placed your offer at, (you can still select your rate for new money) because now you don't have to suffer a new bout of cash drag each month to grab your chosen rate (although active management of repayments can be worthwhile).
After 6 months you will have got the rate you selected (say 3%), whereas if you surrendered a 5 year contract at 6% (if only!) you'd get (6/2 - 1.5) = 1.5%.
NB You can also choose which contracts to terminate by doing the RYI the day after your chosen contract has renewed (if more than 1, and you have a higher-paying contract of the same date, just do a minimum withdrawal first which will reset that one's date).
HtH
|
|
|
Post by GSV3MIaC on Jul 4, 2018 9:34:11 GMT
Your math(s) is slightly defective - 3% rolling for 6 months is 1.5% (roughly) .. same as 6% for 6 months less 1.5%.
|
|
ashtondav
Member of DD Central
Posts: 1,805
Likes: 1,087
|
Post by ashtondav on Jul 4, 2018 10:48:32 GMT
Much better off with lendingworks at 6% for 5 year and 0.6% for selling out early. “Instant access” at 5.4%!! With PF and insurance, although higher risk as a much smaller platform
|
|
rscal
Posts: 921
Likes: 509
|
Post by rscal on Jul 4, 2018 11:00:48 GMT
Consider a case of wanting the money in six months: in Rolling you would continue to get whatever rate you had placed your offer at, (you can still select your rate for new money) because now you don't have to suffer a new bout of cash drag each month to grab your chosen rate (although active management of repayments can be worthwhile). After 6 months you will have got the rate you selected (say 3%), whereas if you surrendered a 5 year contract at 6% (if only!) you'd get (6/2 - 1.5) = 1.5% NB You can also choose which contracts to terminate by doing the RYI the day after your chosen contract has renewed (if more than 1, and you have a higher-paying contract of the same date, just do a minimum withdrawal first which will reset that one's date). HtH . There is no guarantee against cash drag. Ratesetter simply places 'your' lend order at 'yesterday's MR' (which is a black box number) and can do so early or late b/c they place those orders after doing the 'good bit' of the autorollover which they have added to their daily plate. But if yesterday's rate was high 'your' lend order may sit there for an indeterminante period. It is to be hoped that RS can always lend at 'your' rate on the day but it's not even a promise far less a cert.
AIUI the RYI feature doesn't tell you which contracts your requested sum is being set against. We have a 'lowest rate first' rule but it's so opaque that in reality you really have no say or control over disposing of unwanted indiviudal loans - and you're not meant to - you are being directed to the door.
And I also have a concern about how you 'lend' (say) a large chunk and this becomes micro-loans with multi-month lives. It isn't apparent why someone with a great credit rating want's to borrow just over £10 but it happens often enough, and should you come to RYI these you'd better be quick and do so before they dip under that minimum loan size.
(Aside: Whilst it may be somewhat conspiratorial to suggest that the process of complicating things is being pursued with an agenda (since complexity is wasteful effort) something is driving this and 'cui-bono?' is never going to be far away in my view)
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Jul 4, 2018 11:36:08 GMT
Your math(s) is slightly defective - 3% rolling for 6 months is 1.5% (roughly) .. same as 6% for 6 months less 1.5%. Indeed yes, I wasn't really awake! Thanks I had been thinking previously where the break-over times/rates would be, and in that case that was it! So unless you really are going to want access in a few months, better to use one of the term plans.
|
|
IFISAcava
Member of DD Central
Posts: 3,665
Likes: 2,989
|
Post by IFISAcava on Jul 4, 2018 11:56:01 GMT
Much better off with lendingworks at 6% for 5 year and 0.6% for selling out early. “Instant access” at 5.4%!! With PF and insurance, although higher risk as a much smaller platform it's only 5.4% if you leave it for a year! E.g. If you sold after a month it would be -0.1% (0.5% interest, 0.6% fee) - so not 5.4% "instant access".
|
|
|
Post by fiatlender on Jul 4, 2018 12:06:54 GMT
AIUI the RYI feature doesn't tell you which contracts your requested sum is being set against. We have a 'lowest rate first' rule but it's so opaque that in reality you really have no say or control over disposing of unwanted indiviudal loans - and you're not meant to - you are being directed to the door.
This is not correct. The most recent loan first is used to cash out and the RYI does show you which contract that will be, by playing with the RYI figures. This was covered earlier in this thread.
I'm confused why your post says "We have a lowest rate first rule", do you work for RS?
|
|
coogaruk
Hello everyone! Anyone remember me?
Posts: 703
Likes: 463
|
Post by coogaruk on Jul 4, 2018 15:11:18 GMT
Having just got off the phone to RS customer service discussing other matters, during the call I asked for my views on this issue to be fed back and got the distinct impression that I was being added to a long list!
|
|
|
Post by bikeman on Jul 4, 2018 16:32:56 GMT
I've not been paying attention to RS so I'm going to have to ask a dumb question.
I can see that in the rolling market I now only have an option withdraw interest repayments. And I've heard that the loans might be up to 5 years.
Is the rolling market now tying up my capital for extended periods?
Wouldn't I be better off moving into the 1 year, which at least puts a cap on the period and allows sellout for a fee? Is this even possible, with my capital stuck in the rolling market?
|
|
lara
Posts: 345
Likes: 300
|
Post by lara on Jul 4, 2018 16:35:04 GMT
Having just got off the phone to RS customer service discussing other matters, during the call I asked for my views on this issue to be fed back and got the distinct impression that I was being added to a long list! I'm surprised. Each time I have called to complain about some aspect of the new system, I've been made to feel like I am the only one who is not happy with the situation and I am reminded by them that although I personally am worse off, the 93% are likely to be happy as clams.
|
|
coogaruk
Hello everyone! Anyone remember me?
Posts: 703
Likes: 463
|
Post by coogaruk on Jul 4, 2018 17:12:06 GMT
Having just got off the phone to RS customer service discussing other matters, during the call I asked for my views on this issue to be fed back and got the distinct impression that I was being added to a long list! I'm surprised. Each time I have called to complain about some aspect of the new system, I've been made to feel like I am the only one who is not happy with the situation and I am reminded by them that although I personally am worse off, the 93% are likely to be happy as clams. Maybe what you were told and the impression I got are two different things
|
|
coogaruk
Hello everyone! Anyone remember me?
Posts: 703
Likes: 463
|
Post by coogaruk on Jul 4, 2018 17:18:51 GMT
I think I may have found where RS got its reference to the "93%" from.
Extract from their Annual Report, year ended 31 March 2017:-
"The lenders are predominantly individuals: as at 31 March 2017, 93% of the outstanding loans under management were funded by individuals".
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Jul 4, 2018 17:24:33 GMT
I've not been paying attention to RS so I'm going to have to ask a dumb question. I can see that in the rolling market I now only have an option withdraw interest repayments. And I've heard that the loans might be up to 5 years.Is the rolling market now tying up my capital for extended periods? Wouldn't I be better off moving into the 1 year, which at least puts a cap on the period and allows sellout for a fee? Is this even possible, with my capital stuck in the rolling market? Well, they are, but always have been - it's just more obvious now! You can still withdraw from Rolling fee-free, but if you do you are barred from placing any Rolling offers for 14 days. If you have a good rate it may be a change for the better, as you'll keep that rate for the duration of the (amortising) capital. Whether you'd be better off in 1 (or even 5) year contract depends on several factors, discussed hereabouts.
The partial monthly repayments are more involved, but discussed at length previously in this thread. RS have published a couple of notifications explaining the changes in more detail. HtH
|
|
lara
Posts: 345
Likes: 300
|
Post by lara on Jul 4, 2018 17:46:28 GMT
I'm surprised. Each time I have called to complain about some aspect of the new system, I've been made to feel like I am the only one who is not happy with the situation and I am reminded by them that although I personally am worse off, the 93% are likely to be happy as clams. Maybe what you were told and the impression I got are two different things I believe your impression was far more likely to be accurate than the nonsense they tried to palm me off with!
|
|