dorset
Member of DD Central
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Post by dorset on Jun 21, 2018 20:00:25 GMT
As has been said many times here - RS is borrowing short to lend long.
In bank terms the risk is a run on the bank. In RS terms the risk is not to RS (other than reputational) but, come the next recession, to rolling punters who will get locked into loans of up to 5 years at a rate of 2.4% plus an extra chance of some capital losses.
I'm now out of rolling (obviously) but happy to let my five year loans, most from mid 2017 at 6%+ run their course.
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reinvestor
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Post by reinvestor on Jun 21, 2018 20:12:54 GMT
I’m not sure why anyone would bother with rolling when shares have been performing so well, especially when you factor in dividends
You can do proper due diligence and spread your money as you wish.
I have a couple of k left with RS and I’m not putting any more in.
Wish I had listened to my wife and put more money into Fevertree!
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Post by df on Jun 21, 2018 22:18:57 GMT
Your Money Could Do Better...Is RateSetter's come on, yet with Rolling at ~2.6% and the 1 Year at ~2.9% there are better options. Assetz have just increased their Access Accounts to 4.1% (QAA) and 5.1% (30 day notice). As Assetz are now one of the bigger players, and with all secured loans, I'm currently favouring them over RS at present. The lowest I've seen was 1.7% on rolling - some banks beat this with their current and savings accounts. I don't get why people would invest in p2p at below 3% when there are so many better options for a similar risk range investments. AC's recent offer is good news, but even previous rates for QAA&30-day beat RS's offerings. There are also GS, LW, UB etc. offering much better rates for low maintenance and PF protected investments.
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Post by p2plender on Jun 22, 2018 0:50:01 GMT
3.1% at 01:46
Borrowers Rate Lenders
>>3.0% £3.6m
2.9% £260.9k
2.8% £773.71
Matches last 24 hours: 11934
Strange. They've been showing last matches at 3.1% yet the queue starts at 2.8%
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Post by wangja on Jun 22, 2018 3:14:10 GMT
.... perhaps the RS rates will creep up over the next few months as some lenders continue to move their money elsewhere... Well, the total on offer in RM has certainly dropped significantly: only 3.6 million at this moment. That's a drop of about 10 million on a month ago.
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jlend
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Post by jlend on Jun 22, 2018 6:15:00 GMT
Your Money Could Do Better...Is RateSetter's come on, yet with Rolling at ~2.6% and the 1 Year at ~2.9% there are better options. Assetz have just increased their Access Accounts to 4.1% (QAA) and 5.1% (30 day notice). As Assetz are now one of the bigger players, and with all secured loans, I'm currently favouring them over RS at present. The lowest I've seen was 1.7% on rolling - some banks beat this with their current and savings accounts. I don't get why people would invest in p2p at below 3% when there are so many better options for a similar risk range investments. AC's recent offer is good news, but even previous rates for QAA&30-day beat RS's offerings. There are also GS, LW, UB etc. offering much better rates for low maintenance and PF protected investments. A few thoughts on why (putting aside the recent technical changes to the account), plus i also think under 3 percent is low. I think a large cohort of RS lenders will never have heard of this forum, GS, LW, UB or even AC, with many lenders rarely logging on and just happy to take the money, my partner included. AC can come across as complicated for many people and what has happened with the GBBA1 and GEIA may have put some people off who would otherwise have put money there. For some people i assume there is still the perception, right or wrong, that RS is safer than GS, LW, UB or AC due to their long track record. AC have to offer higher rates to attract money at the moment hence the recent rate rise.
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Post by mukiwa on Jun 22, 2018 12:16:10 GMT
What with property going to crash and commercial property even worse! Interest rates are going to be around 10% in 5/7 years Wish I had a crystal ball like yours Time will tell I guess. I'm acting accordingly. DYOR.
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jlend
Member of DD Central
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Post by jlend on Jun 24, 2018 8:18:37 GMT
Someone has placed a lend order of 2.7% on the 5 year market....
I think they meant the rolling market....
It is a shame there are no checks in the system to stop this happening.....
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coogaruk
Hello everyone! Anyone remember me?
Posts: 703
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Post by coogaruk on Jun 24, 2018 13:46:53 GMT
Someone has placed a lend order of 2.7% on the 5 year market.... I think they meant the rolling market.... It is a shame there are no checks in the system to stop this happening..... 1) It's probably an easy mistake to make (have come close myself a few times when in a bit of a rush)
2) When I was about to 'pull the trigger' I did get a "Rate too low" warning though (can't remember the rate but am sure it was higher than 2.7%)
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starfished
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Post by starfished on Jun 24, 2018 22:21:25 GMT
Someone has placed a lend order of 2.7% on the 5 year market.... I think they meant the rolling market.... It is a shame there are no checks in the system to stop this happening..... If you have two chrome tabs open for different markets, it confuses it and sometimes adds to the wrong market as well. Had that happen to me and not surprised it happens to others as well.
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Post by p2plender on Jun 25, 2018 0:01:31 GMT
You certainly get a warning if you try to lend too high. RS is becoming like Ryanair at the moment. The 'ratesetter expert' tab being a good example.
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Post by p2plender on Jun 26, 2018 5:54:20 GMT
Only about £3 million left in rolling to lend overnight. At this rate the pot will be exhausted in a couple of months. Things could get tight for RS here or should I say RS monthly investors. A very good chance of seeing funds suddenly lent out sub 2.5% for potentially 5 yrs. Time for caution at RS.
I'm nearly all out RS. LW 5 yr a far better proposition with a 0.6% early redemption fee, kind of hammers monthly RS rates if you get my drift..
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jlend
Member of DD Central
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Post by jlend on Jun 26, 2018 7:27:20 GMT
Only about £3 million left in rolling to lend overnight. At this rate the pot will be exhausted in a couple of months. Things could get tight for RS here or should I say RS monthly investors. A very good chance of seeing funds suddenly lent out sub 2.5% for potentially 5 yrs. Time for caution at RS. I'm nearly all out RS. LW 5 yr a far better proposition with a 0.6% early redemption fee, kind of hammers monthly RS rates if you get my drift.. As you say it will take a few months for things to settle down to a new normal on RS. There is certainly a lot less money sitting uninvested on the rolling market now. There was a very large influx of isa money that bumped up the total that has now been lent. Plus there will be a lot of monthly capital and interest repayments from borrowers over the next couple of weeks around month end. I expect we won't see large amounts of uninvested cash on the markets for a long time now.
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ashtondav
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Post by ashtondav on Jun 26, 2018 7:28:33 GMT
I’ve got about £10,000 in AC 30DAA just waiting for RS 5 yr to get back to 6%.
Maybe a long wait...
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