TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
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Post by TheDriver on Oct 15, 2018 5:11:50 GMT
not been active on RateSetter (or much else actually) recently. I've not waded through all the pages here, sorry, but I'm struggling to understand why my monthly appears to have been stuck at 3.2% when it appears to have been set to "market Rate" for capital, and from what I see from these posts MR should have been higher than that ? [P.S. I've now set to a user defined rate]. The monthly market is no more, sadly. To all intents and purposes, it's now the 5 year model but with lower interest and no fee on withdrawal. But you will be hit with a 14 day ban on re-investment if you withdraw any of your funds. Agreed the Monthly renewals market has now become a true Rolling facility, but I'm quite happy to be locked into mostly 4.9% until I decide to pull out; fee-free!, and not have to chase rates vs cash-drag every month. Why would you want to reinvest shortly after a withdrawal unless you were playing the rate market? - which RS admitted this was intended to preclude (although there are options to avoid this restriction).
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smezz
Posts: 180
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Post by smezz on Oct 16, 2018 6:34:01 GMT
The borrower should pay some penalty for early redemption - say 3 months interest payable to to lender. [ .... ]
Not sure about the permissibility or even legality of penalties for early repayment ... I think a small penalty would be justifiable.
The rules for Mortgage lenders say that:- a) they must make it clear up-front that there is a penalty. b) the penalty must reflect the costs incurred. c) the cost can be calculated on a 'class' basis - i.e. on an average not an individual loan basis.
based on £1000 loan with an average wait time on the lending queue of 7 days where you could be getting 2.5% elsewhere e.g. Halifax Regular Saver gives a 'lost interest' figure of about 50p.
Not a fortune, I grant you but more than most interest payments on my fragmented loans!
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reinvestor
Member of DD Central
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Post by reinvestor on Oct 16, 2018 7:59:37 GMT
Up until 2011, consumer credit lenders could charge two months interest as an early settlement penalty. Since then, it has been reduced to a sum that equates to about a quarter of that.
There is no requirement for any lender to give any non-regulated borrower any form of early settlement discount at all so borrow £10k with interest charges of say £2k as a limited company and you want to settle it after a week, the lender is perfectly entitled to charge the full £2k. Most don't and do give an early settlement discount. Lombard don't though - you pay all of the interest whenever you settle.
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mickj
Member of DD Central
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Post by mickj on Oct 16, 2018 8:06:33 GMT
The monthly market is no more, sadly. To all intents and purposes, it's now the 5 year model but with lower interest and no fee on withdrawal. But you will be hit with a 14 day ban on re-investment if you withdraw any of your funds. Agreed the Monthly renewals market has now become a true Rolling facility, but I'm quite happy to be locked into mostly 4.9% until I decide to pull out; fee-free!, and not have to chase rates vs cash-drag every month. Why would you want to reinvest shortly after a withdrawal unless you were playing the rate market? - which RS admitted this was intended to preclude (although there are options to avoid this restriction). If you are lucky enough to be at 4.9% - not so easy to find.
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Post by fiatlender on Oct 16, 2018 9:24:36 GMT
Agreed the Monthly renewals market has now become a true Rolling facility, but I'm quite happy to be locked into mostly 4.9% until I decide to pull out; fee-free!, and not have to chase rates vs cash-drag every month. Why would you want to reinvest shortly after a withdrawal unless you were playing the rate market? - which RS admitted this was intended to preclude (although there are options to avoid this restriction). If you are lucky enough to be at 4.9% - not so easy to find.
4.7% & 4.8% got matched on Sunday. From memory, 4.9% was matched last night, so not really about 'luck'.
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st182
Posts: 27
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Post by st182 on Oct 16, 2018 9:37:49 GMT
I'm new to p2p (hello!) and I've chosen rate setter to have a play / find my feet.
My first rate was 3.4% on rolling, but I've been popping on to get a feel for rates, and managed to match a 4.7% last night.
So IMH-inexperienced-O, with a little patience, it is possible to get a higher rate. Whether these loans are more likely to be settled earlier as I've read about on other threads on this board, remains to be seen.
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Stonk
Stonking
Posts: 735
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Post by Stonk on Oct 16, 2018 20:44:08 GMT
Not to put a damper on it but last time I got 7% it was repaid very quickly.
Does anyone have any 7% from more than a year ago?
Yes:
-- 3 contracts formed on 30 August 2017, 1 at each of 7.0%, 7.2% and 7.9% -- 3 contracts formed on 2 Sep 2017 from distinct loans at 7.1%
From around the same period I also had 7 other contracts at or higher than 7.0% which have since repaid.
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Stonk
Stonking
Posts: 735
Likes: 658
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Post by Stonk on Oct 16, 2018 23:25:44 GMT
Whether these loans are more likely to be settled earlier as I've read about on other threads on this board, remains to be seen.
In my experience, there is a slightly greater tendency of loans at higher rates to be repaid early, but perhaps not as much as you might expect. And it is certainly not the case that you'll be repaid in descending order of interest rate.
Of the 13 loans at 7.0%-plus that I received just over a year ago, 7 have repaid and 6 remain. This is a greater proportion repaid than in my portfolio as a whole. However, the very highest one is still running.
I have loans for just about every rate from 5.5% to 7.0%. My 5 most recent early repayments were of loans at 5.9%, 6.0%, 7.0%, 6.4%, and 6.2%.
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Post by nutfield on Oct 17, 2018 8:47:46 GMT
Whether these loans are more likely to be settled earlier as I've read about on other threads on this board, remains to be seen.
In my experience, there is a slightly greater tendency of loans at higher rates to be repaid early, but perhaps not as much as you might expect. And it is certainly not the case that you'll be repaid in descending order of interest rate.
Of the 13 loans at 7.0%-plus that I received just over a year ago, 7 have repaid and 6 remain. This is a greater proportion repaid than in my portfolio as a whole. However, the very highest one is still running.
I have loans for just about every rate from 5.5% to 7.0%. My 5 most recent early repayments were of loans at 5.9%, 6.0%, 7.0%, 6.4%, and 6.2%.
What is the easiest way to find out what the rate of interest on repaid loans was? I often wonder whether I have lost a little gem or a clunker!
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Stonk
Stonking
Posts: 735
Likes: 658
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Post by Stonk on Oct 17, 2018 15:55:23 GMT
What is the easiest way to find out what the rate of interest on repaid loans was? I often wonder whether I have lost a little gem or a clunker!
If you are me, you look in your spreadsheet which contains details of every historical transaction and future scheduled payment!
If you are normal, the information you seek is buried on the RS website:
(1) Click "Portfolio" on the left menu, to display the "Your Money On Loan" page ...
(2) In the "Summary by product", click on the market, e.g. "5 Year" to bring up "Your 5 Year Income Money" ... (3) Expand the "On Loan" section at the bottom ... (4) Select "Your repaid money" ... (5) Now you can query for all repaid loans, by the month they ended.
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Post by nutfield on Oct 17, 2018 16:08:58 GMT
What is the easiest way to find out what the rate of interest on repaid loans was? I often wonder whether I have lost a little gem or a clunker!
If you are me, you look in your spreadsheet which contains details of every historical transaction and future scheduled payment!
If you are normal, the information you seek is buried on the RS website:
(1) Click "Portfolio" on the left menu, to display the "Your Money On Loan" page ...
(2) In the "Summary by product", click on the market, e.g. "5 Year" to bring up "Your 5 Year Income Money" ... (3) Expand the "On Loan" section at the bottom ... (4) Select "Your repaid money" ... (5) Now you can query for all repaid loans, by the month they ended.
Thanks Mr Stonk! It is easy when you know how.
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