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Post by debaser on Dec 31, 2018 16:58:46 GMT
Is this normal?
I took out a 1 year fix which was at something like 4.7%.
2 months later it was repaid, and then auto-reinvested at about 2%.
I feel ripped off. I guess I should have disabled auto-reinvest in the rolling market? This doesn't seem like what was advertised when I signed up for 4.7% over 12 months.
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Post by nutfield on Dec 31, 2018 17:33:55 GMT
The only way is to specify that repaid money goes into your holding account. Then you can take a view on what rates of interest you are prepared to accept.
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macq
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Post by macq on Dec 31, 2018 18:08:20 GMT
or set your own rate into which ever product you want your repayments in
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mickj
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Post by mickj on Dec 31, 2018 18:52:14 GMT
Is this normal?
I took out a 1 year fix which was at something like 4.7%.
2 months later it was repaid, and then auto-reinvested at about 2%.
I feel ripped off. I guess I should have disabled auto-reinvest in the rolling market? This doesn't seem like what was advertised when I signed up for 4.7% over 12 months.
I think we have all been there, I now (as above) set an unlikely higher reinvestment rate, I can then cancel and choose when I want to invest. Means I need to login often to keep an eye on whats going on. Edit: just thought I would say ain't seen 4.7% in the one year for a while, do have some from a while back
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Stonk
Stonking
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Post by Stonk on Dec 31, 2018 20:49:10 GMT
Is this normal?
I took out a 1 year fix which was at something like 4.7%.
2 months later it was repaid, and then auto-reinvested at about 2%.
I feel ripped off. I guess I should have disabled auto-reinvest in the rolling market? This doesn't seem like what was advertised when I signed up for 4.7% over 12 months.
This is normal, in the sense that there is nothing unusual or untoward about it. Your borrower repaid early, which they are entitled to at any time without penalty. It is a mistake to assume that any loan on RS is fixed to the originally-chosen end date. From my experience (mainly on the 5 year market), I estimate at least 1 in 3 loans will repay early -- sometimes very early indeed.
If your money has been automatically reinvested at 2%, presumably on the Rolling market, then:
(A) Consider "releasing your investment", i.e., selling that loan, because 2% is a terrible interest rate for money invested at risk (you can get that in an ordinary FSCS-protected savings account). Offer the money back as an order on the 1 Year market at the 4.7% you originally lent at, and it will probably be matched again within a very short time frame. Personally I would aim for a few tenths higher, but it's your call.
(B) You should tweak your settings to prevent a similar thing happening again. Auto-investments are rarely optimal and frequently awful ...
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ceejay
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Post by ceejay on Jan 1, 2019 11:22:25 GMT
I think we have all been there, I now (as above) set an unlikely higher reinvestment rate, I can then cancel and choose when I want to invest. Means I need to login often to keep an eye on whats going on. Edit: just thought I would say ain't seen 4.7% in the one year for a while, do have some from a while back
Means you've not been keeping an eye on what's going on! I currently have sixteen loan chunks in the one year taken out over the last four months, and the lowest rate I have is 5.1%.
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aju
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Post by aju on Jan 1, 2019 12:19:30 GMT
Is this normal?
I took out a 1 year fix which was at something like 4.7%.
2 months later it was repaid, and then auto-reinvested at about 2%.
I feel ripped off. I guess I should have disabled auto-reinvest in the rolling market? This doesn't seem like what was advertised when I signed up for 4.7% over 12 months.
Whilst I agree with what others have said so far, I have real concern whether advertising is strictly correct or worse clear enough for unsuspecting punters coming in expecting headline rates. I didn't see the "fixed" option when we signed up a couple of months but then I have been in P2P for over ten years and am quite well aware that the P2P borrowers tend to have the option to close their loans when they want without penalty so perhaps I never assumed the rates were fixed. The early closure of loans without penalty to the borrower is a clear benefit of p2p over traditional borrowing from banks etc. Just looked again at the ratesetter front page today and there seems to be no mention of fixed I can see on the lending options. That said if you have evidence that RS said it was 1 year fixed rate then surely they can't alter that can they?. In rolling can't you remove it and then relend - ok you have to wait 14 days - but that will be your only option until the new loan is completed or paid off. Also even if they didn't pay it off you would have been technically relending in auto mode anyway and could have picked up any old rates from just the repayments and interest returned. Are you a new lender on ratesetter by chance, getting the £100 for £1000 or more lent for over 364 days. That gives 10% return on the £1000 after a year anyway even if the interest rate was 0.5%!.
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aju
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Post by aju on Jan 1, 2019 12:26:10 GMT
I think we have all been there, I now (as above) set an unlikely higher reinvestment rate, I can then cancel and choose when I want to invest. Means I need to login often to keep an eye on whats going on. Edit: just thought I would say ain't seen 4.7% in the one year for a while, do have some from a while back
Means you've not been keeping an eye on what's going on! I currently have sixteen loan chunks in the one year taken out over the last four months, and the lowest rate I have is 5.1%.
Wow does that mean you have monitored it 16 times to get better rates or you have just been fortunate. I've been struggling to get better than 6.0% in the 5 year. I don't bother with the shorter term stuff and I'm still learning about RS so monitoring daily - well my web screen is monitoring it and I glance at it occasionally. Mrs AJU who invited me and picked up her £50 recently immediately swept that out of rolling and placed into her 5yr too. (Just looking at the daily rates in the 1Y it hit 6% over the xmas period for 3 days in a row 25/26/27 according to RS MR stats data - the 5Y only hit an MR of 6% on 3rd Dec, that said I picked up a 6.0% and a 6.1% on 17th and 24th)
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rscal
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Post by rscal on Jan 1, 2019 12:57:56 GMT
Unless I have missed something, can't the OP now just exit RS with their bonuses intact as early repayment in that sense applies to both parties?
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aju
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Post by aju on Jan 1, 2019 13:00:12 GMT
Unless I have missed something, can't the OP now just exit RS with their bonuses intact as early repayment in that sense applies to both parties? If we are talking the £100 for £1000 lent out the terms clearly states lent out for 365 days.
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rscal
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Post by rscal on Jan 1, 2019 13:09:26 GMT
Unless I have missed something, can't the OP now just exit RS with their bonuses intact as early repayment in that sense applies to both parties? If we are talking the £100 for £1000 lent out the terms clearly states lent out for 365 days. Relevent term, I think: "2. You will qualify for a £100 bonus if you invest and put on loan a minimum of £1,000 within 8 weeks post registration and keep this invested for 365 days."
So how is this working in practice if the borrower repaid in 60 days and the bonus was already added to the investor's account? (I don't know that it was, I'm jus curious) You could take the bonus out first and then just not reinvest the capital and quietly take it out. Would RS then take a slice out (assuming the instruction was straight to bank?) Morally, I would have no compunction but I don't want ppl 'bray king the rulz'
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aju
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Post by aju on Jan 1, 2019 14:56:45 GMT
If we are talking the £100 for £1000 lent out the terms clearly states lent out for 365 days. Relevent term, I think: "2. You will qualify for a £100 bonus if you invest and put on loan a minimum of £1,000 within 8 weeks post registration and keep this invested for 365 days." So how is this working in practice if the borrower repaid in 60 days and the bonus was already added to the investor's account? (I don't know that it was, I'm jus curious) You could take the bonus out first and then just not reinvest the capital and quietly take it out. Would RS then take a slice out (assuming the instruction was straight to bank?) Morally, I would have no compunction but I don't want ppl 'bray king the rulz'
I would think that RS have been around long enough to not get caught on that one and that's the term I was referring to and had read myself but I don't know is the short answer. I have seen some review sites that clearly show an account with an entry in their data that has the bonus flagged up as being deliverable in a certain number of days which if I remember correctly looks like a days counter to the bonus arriving. Thing is myself and MrsAju signed up with these £100 in mind but neither of has an entry for the £100 Bonus item in any of our RS screens that suggest we have qualified that I can find. When I found this interesting detail before Christmas I sent RS an email with the question as to whether I had in fact qualified. I've yet to receive a response on that one but I took a copy of all the relevant screens as we both signed up. In Mrs Aju's case as she invited me she received the £50 when I signed up. I guess time will tell but if I get an answer either way i'll post it on here. The review in question can be found here if you want to see the reference I'm querying. In chrome just press Ctrl+F and type in "ratesetter welcome" and press return and you will see what I mean on the screen. I've tried to include the line I'm referring to but you need to click it to see it.
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ceejay
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Post by ceejay on Jan 1, 2019 23:56:51 GMT
Means you've not been keeping an eye on what's going on! I currently have sixteen loan chunks in the one year taken out over the last four months, and the lowest rate I have is 5.1%.
Wow does that mean you have monitored it 16 times to get better rates or you have just been fortunate. I've been struggling to get better than 6.0% in the 5 year. I don't bother with the shorter term stuff and I'm still learning about RS so monitoring daily - well my web screen is monitoring it and I glance at it occasionally. Mrs AJU who invited me and picked up her £50 recently immediately swept that out of rolling and placed into her 5yr too. (Just looking at the daily rates in the 1Y it hit 6% over the xmas period for 3 days in a row 25/26/27 according to RS MR stats data - the 5Y only hit an MR of 6% on 3rd Dec, that said I picked up a 6.0% and a 6.1% on 17th and 24th) Lucky. But, as the athletes like to say, the more I practice the luckier I get!
And I certainly wouldn't accept only 6% in the 5 year. Not that I have very much in that market, to be fair, but my average is 6.7.
I don't consider myself to be a master of this market, by any means, but you do need to pay attention to the state of the full market, and to be prepared to sit it out or withdraw if conditions are not right.
As it happens, I am currently trimming my holdings in RS as part of a more negative outlook on P2P right now, but I guess that just makes it easier to be selective.
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aju
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Post by aju on Jan 2, 2019 0:18:14 GMT
Wow does that mean you have monitored it 16 times to get better rates or you have just been fortunate. I've been struggling to get better than 6.0% in the 5 year. I don't bother with the shorter term stuff and I'm still learning about RS so monitoring daily - well my web screen is monitoring it and I glance at it occasionally. Mrs AJU who invited me and picked up her £50 recently immediately swept that out of rolling and placed into her 5yr too. (Just looking at the daily rates in the 1Y it hit 6% over the xmas period for 3 days in a row 25/26/27 according to RS MR stats data - the 5Y only hit an MR of 6% on 3rd Dec, that said I picked up a 6.0% and a 6.1% on 17th and 24th) Lucky. But, as the athletes like to say, the more I practice the luckier I get!
And I certainly wouldn't accept only 6% in the 5 year. Not that I have very much in that market, to be fair, but my average is 6.7.
I don't consider myself to be a master of this market, by any means, but you do need to pay attention to the state of the full market, and to be prepared to sit it out or withdraw if conditions are not right.
As it happens, I am currently trimming my holdings in RS as part of a more negative outlook on P2P right now, but I guess that just makes it easier to be selective. 6.7 as an average, blimey that is good from what I've seen over the last month and a bit. I have a couple of testers running at 6.1 and 6.2 at the moment. On the 6.1 I am sitting with 850k before me and the current hitter is 5.9% sporadically hitting 6.0. The 6.2 is sitting with just over 1.2M before it so not likely to hit. It's getting closer over the last couple of days but not close enough at the moment. The thing is though if one has to wait too long then the increase in rate is very minimal effect anyway. What do you mean about the full market I'm only in the 5yr, is there something I should be looking at in the other markets too. My screens have them on but i'm not really watching them closely.
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ceejay
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Post by ceejay on Jan 2, 2019 9:47:40 GMT
... What do you mean about the full market I'm only in the 5yr, is there something I should be looking at in the other markets too. My screens have them on but i'm not really watching them closely.
By "full market" I simply meant the list of offers that you see if you click "view full market", which I think you are already looking at.
I don't think this is rocket science: you need to pick rates that you are happy (careful choice of word there) with, and then don't accept anything less. If they're not available, go elsewhere (though I might be prepared to park a bit in Rolling for a short time if I thought that the longer rates might rise in the next month or so). Never, ever accept "Market Rate". I mostly have Auto-invest turned off on all markets, though if I will be away for a while then I will turn it on with a moderately optimistic level which either catches or it doesn't.
If you watch for long enough, I think you will spot patterns of rate changes - by time, day, week, month - although there is of course plenty of noise on top of that. Bear in mind that RS's graphs of "Market Rate" are of only limited value if you never buy at Market Rate - what really matters is the best rate that was available on a given day, which may be very different from the MR.
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