johni
Member of DD Central
Posts: 365
Likes: 327
|
Post by johni on Jun 18, 2018 7:51:43 GMT
Are we investors being ripped off at the expense of Ratesetter profit? Over the last 24 hours 27578 have been made in the rolling market, yet only 561have ben done in the 5 year market. Alot of the loans are suitable for the 5 year market but Ratesetter would have to payout a higher interest. It is clearly in their best interest to keep rolling rates as low as possible. Unfortunately another good business appears to have fallen for the corporate greed and forgotten the people who helped them build the business.
|
|
rscal
Posts: 914
Likes: 503
|
Post by rscal on Jun 18, 2018 8:39:10 GMT
[Not exactly] AIUI the Rolling Market should be properly seen as a "with access" product for the lenders even if the underlying loans are for 6 months to 5 years. There is no "access fee" (unlike "1.5%" for accessed 5 year money) albeit with the new changes there is a 14 day "notice" period in effect after you withdraw when you cannot place new orders to lend.
|
|
cb25
Posts: 3,523
Likes: 2,666
|
Post by cb25 on Jun 18, 2018 8:54:19 GMT
I think it depends on how long people allow their Rolling money to rollover for. If it's a year or more, they'd probably be better off putting the money in the 5-year market and taking the 1.5% hit if they need to withdraw the money (when I was logged into RS just now there was a 2.3% difference between Rolling last matched rate and 5-year last matched rate)
|
|
johni
Member of DD Central
Posts: 365
Likes: 327
|
Post by johni on Jun 18, 2018 11:19:00 GMT
But if there are so many loans 15000. Then surely they should be more loans over 5 years especially as the interest charged is more than enough to cover 6%. This is about making as much profit for the company as possible at the expense of its lenders. They have totally forgotten their roots without us investors they would not have had a business. In 2 years time they will regret this quick profit mentality when the business is no more. Without investors how can they lend.
|
|
jlend
Member of DD Central
Posts: 1,817
Likes: 1,444
|
Post by jlend on Jun 18, 2018 11:39:36 GMT
The recent change on the rolling market has only been in place for less than 2 weeks.
It will take a couple of months at least to see how things settle down.
Also there was a wall of ISA money invested on the platform that may now have slowed down.
So there is a possibility rates may creep up again at some time.
|
|
Mick
Be nice... People respond.
Posts: 138
Likes: 93
|
Post by Mick on Jun 19, 2018 6:43:41 GMT
I would think anyone investing 'At risk money' at 2 percent needs to give there head a wobble.
|
|
|
Post by wangja on Jun 19, 2018 7:19:56 GMT
But if there are so many loans 15000. Then surely they should be more loans over 5 years especially as the interest charged is more than enough to cover 6%. This is about making as much profit for the company as possible at the expense of its lenders. They have totally forgotten their roots without us investors they would not have had a business. In 2 years time they will regret this quick profit mentality when the business is no more. Without investors how can they lend. Interesting perhaps to note is that the amount offered in rolling has dropped from 12-14 million to about 4 million. Perhaps the market will stabilise soon.
|
|
puddleduck
Member of DD Central
Posts: 537
Likes: 489
|
Post by puddleduck on Jun 19, 2018 7:33:54 GMT
But if there are so many loans 15000. Then surely they should be more loans over 5 years especially as the interest charged is more than enough to cover 6%. This is about making as much profit for the company as possible at the expense of its lenders. They have totally forgotten their roots without us investors they would not have had a business. In 2 years time they will regret this quick profit mentality when the business is no more. Without investors how can they lend. Interesting perhaps to note is that the amount offered in rolling has dropped from 12-14 million to about 4 million. Perhaps the market will stabilise soon. I suspect the 7% who did use the set your own rate feature are likely to some of the larger investors, and would likely to have headed for the exits, so I'm not hugely surprised to see such a large drop. Rolling at 4%+ is quite interesting for HNW as somewhere to park money and have it doing 'something' waiting for something else, circa 2.5% then the smart money quickly goes elsewhere.
|
|
|
Post by p2plender on Jun 19, 2018 7:34:22 GMT
The answer you are looking for is yes. Might help bolster the PF as well.
I'm sure the most ardent of RS fans will be thinning out their money on the platform.
All a bit rubbish.
|
|