benaj
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Post by benaj on Mar 18, 2019 20:57:20 GMT
Just got a 0.5% chunk repayment back earlier from the 5 year market from loans started October 18. Do you reinvest in the 5 year back in the same market or withdraw?
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Post by df on Mar 18, 2019 21:15:16 GMT
Just got a 0.5% chunk repayment back earlier from the 5 year market from loans started October 18. Do you reinvest in the 5 year back in the same market or withdraw? I withdraw, unless it looks like a chance to reinvest it at the rate I'm happy with.
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ashtondav
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Post by ashtondav on Mar 19, 2019 9:44:15 GMT
I set the instruction to re invest at 6.5%. At the end of the month, if it’s not gone, I transfer it to lendingworks where it does (eventually) get lent out at 6.5%.
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smezz
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Post by smezz on Mar 19, 2019 9:51:06 GMT
Some people don't like having lots of small orders (once they get to < £10 you can't withdraw them).
Two basic rules:
1) Never invest at Market rate.
2) Decide your target exposure to RS and don't go above 105 / 110% of this.
The best rates are w/e - up to lunchtime on Mondays & bank hols (new money may depress rates before Easter but could still be interesting).
Keep an eye on the best rates for previous w/e ( this board usually tells you) - last w/e 6.7% was achieved but not all the queue got placed.
Unless you want to spend a lot of time on it I'd place chunks on 1 or 2 points below the previous max - say 6.5 and 6.6 this w/e. Remember .1% of £1000 is only £1 a year (corrected as per comment below).
Withdraw the bits of repayments (You can auto withdraw your cash balance or a fixed amount either weekly or monthly).
Be prepared to put nothing in if rates drop below say 6%.
Good luck.
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Post by Deleted on Mar 19, 2019 11:02:04 GMT
Some people don't like having lots of small orders (once they get to < £10 you can't withdraw them). Two basic rules: 1) Never invest at Market rate. 2) Decide your target exposure to RS and don't go above 105 / 110% of this. The best rates are w/e - up to lunchtime on Mondays & bank hols (new money may depress rates before Easter but could still be interesting). Keep an eye on the best rates for previous w/e ( this board usually tells you) - last w/e 6.7% was achieved but not all the queue got placed. Unless you want to spend a lot of time on it I'd place chunks on 1 or 2 points below the previous max - say 6.5 and 6.6 this w/e. Remember .01% of £1000 is only £1 a year.
Withdraw the bits of repayments (You can auto withdraw your cash balance or a fixed amount either weekly or monthly). Be prepared to put nothing in if rates drop below say 6%.
Good luck.
Some good thoughts, thanks. 0.1% of £1000 is £1pa (rather than 0.01%).
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Stonk
Stonking
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Post by Stonk on Mar 19, 2019 11:57:22 GMT
Agreed. A couple more guidelines:
-- There's no point holding out for weeks for an extra tenth of a percent. It takes a long time for that extra tenth to overcome the time you spent earning zero. Also, the loan you eventually buy might repay very quickly.
-- Sunday evening used to offer the best rates. Until RS get their slow processing fixed, the best rates are now on Monday late afternoon. If you know what to look for, you can judge how far Monday's repayment job has progressed and hence for how much longer the market will be artificially high.
-- 5 Year pays back quicker than you might expect. Many loans repay early, sometimes very early. Almost 25% of the outstanding principle that I had invested on 1 January 2019 has been repaid in the < 3 months since then. I was a little bit above my target investment level back then, but I knew it would be returned quickly. The last 3 months has been very prone to early repayments, but even so over the lifetime of my account at least 35% of my loans have repaid early within 2 years, and probably over half of them will repay before their originally scheduled date.
-- Keep an eye on the Provision Fund. If it is heading downwards, it might be prudent to invest less and/or demand a higher rate. For example, I was happy to add funds to lend at 6.5% when the PF was 125%, but for the moment it's 117% and dropping so I will need closer to 7.0% to tempt me.
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ashtondav
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Post by ashtondav on Mar 19, 2019 13:52:25 GMT
Of course the problem is that once you've lent the money it's exposed to the PF in the (5 year) future. In your case all your 6.5% money is exposed to the current PF cover of 117%.
My own strategy would be to sell as much as possible if the PF ever hit 110% or less for a few weeks.
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Stonk
Stonking
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Post by Stonk on Mar 19, 2019 15:00:47 GMT
Of course the problem is that once you've lent the money it's exposed to the PF in the (5 year) future. In your case all your 6.5% money is exposed to the current PF cover of 117%. Indeed. Like share prices which can go up and down, my view is that in the absence of further information the PF coverage can go either way. It is true that if I had known it would drop to 117%, then I would not have added so much a few months ago when it was 125% ... but it could equally well have carried on going up and I'd be sitting here wishing I had piled more in!
I don't really fancy selling from 5 Year because of the penalty, but I will certainly reconsider this if the PF drops under 110%.
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Post by df on Mar 19, 2019 18:50:31 GMT
Agreed. A couple more guidelines:
-- There's no point holding out for weeks for an extra tenth of a percent. It takes a long time for that extra tenth to overcome the time you spent earning zero. Also, the loan you eventually buy might repay very quickly.
-- Sunday evening used to offer the best rates. Until RS get their slow processing fixed, the best rates are now on Monday late afternoon. If you know what to look for, you can judge how far Monday's repayment job has progressed and hence for how much longer the market will be artificially high.
-- 5 Year pays back quicker than you might expect. Many loans repay early, sometimes very early. Almost 25% of the outstanding principle that I had invested on 1 January 2019 has been repaid in the < 3 months since then. I was a little bit above my target investment level back then, but I knew it would be returned quickly. The last 3 months has been very prone to early repayments, but even so over the lifetime of my account at least 35% of my loans have repaid early within 2 years, and probably over half of them will repay before their originally scheduled date.
-- Keep an eye on the Provision Fund. If it is heading downwards, it might be prudent to invest less and/or demand a higher rate. For example, I was happy to add funds to lend at 6.5% when the PF was 125%, but for the moment it's 117% and dropping so I will need closer to 7.0% to tempt me.
Interesting. Early repayments never happened to me on 5-year.
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aju
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Post by aju on Mar 20, 2019 0:25:30 GMT
Agreed. A couple more guidelines:
-- There's no point holding out for weeks for an extra tenth of a percent. It takes a long time for that extra tenth to overcome the time you spent earning zero. Also, the loan you eventually buy might repay very quickly.
-- Sunday evening used to offer the best rates. Until RS get their slow processing fixed, the best rates are now on Monday late afternoon. If you know what to look for, you can judge how far Monday's repayment job has progressed and hence for how much longer the market will be artificially high.
-- 5 Year pays back quicker than you might expect. Many loans repay early, sometimes very early. Almost 25% of the outstanding principle that I had invested on 1 January 2019 has been repaid in the < 3 months since then. I was a little bit above my target investment level back then, but I knew it would be returned quickly. The last 3 months has been very prone to early repayments, but even so over the lifetime of my account at least 35% of my loans have repaid early within 2 years, and probably over half of them will repay before their originally scheduled date.
-- Keep an eye on the Provision Fund. If it is heading downwards, it might be prudent to invest less and/or demand a higher rate. For example, I was happy to add funds to lend at 6.5% when the PF was 125%, but for the moment it's 117% and dropping so I will need closer to 7.0% to tempt me.
What should I be looking for to judge mondays repayment run?. I tend to watch the 5Y markets screen along with the "View full market" option for the 5Y and also my individual rate monitors - unmatched queue for each loan level I may have set. At the beginning of the week I will set each lending slightly high as I am usually waiting for the Weekend/Monday effect to get the rates as high as possible. That strategy failed this week in that one of Mrs Aju's rates went much earlier than we were expecting - not a negative but if I had been available to watch it more closely I might jumped it it up a couple of points as the rates seemed to be going higher. So far for the past 5 weeks or so this has been working although I do not know how much higher I might have achieved if I had tried.
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benaj
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Post by benaj on Mar 20, 2019 12:06:18 GMT
Interesting. Early repayments never happened to me on 5-year. My october '18 loans have a high Early Repayment Rate. My 5k lent on the 1st October was repaid in full on the 4th October. Since 4th October, I now have 10% Early repayment from last October loans. Another 0.8% this morning.
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borofan
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Post by borofan on Mar 20, 2019 13:03:56 GMT
I have enough in the 5 year, so I look for the days when the 1 year is a decent level, and at only 0.3% early withdraw fee I think it's more attractive.
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Post by df on Mar 20, 2019 13:25:54 GMT
Interesting. Early repayments never happened to me on 5-year. My october '18 loans have a high Early Repayment Rate. My 5k lent on the 1st October was repaid in full on the 4th October. Since 4th October, I now have 10% Early repayment from last October loans. Another 0.8% this morning. I have 12 orders matched in October (all of them 6.6%-6.7%), none of these loans repaid early so far.
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star dust
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Post by star dust on Mar 20, 2019 13:33:18 GMT
My october '18 loans have a high Early Repayment Rate. My 5k lent on the 1st October was repaid in full on the 4th October. Since 4th October, I now have 10% Early repayment from last October loans. Another 0.8% this morning. I have 12 orders matched in October (all of them 6.6%-6.7%), none of these loans repaid early so far. I had an October 6.8% one repaid this morning - others from October at that rate and 6.9% still going at the moment.
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Post by df on Mar 20, 2019 13:49:32 GMT
I have 12 orders matched in October (all of them 6.6%-6.7%), none of these loans repaid early so far. I had an October 6.8% one repaid this morning - others from October at that rate and 6.9% still going at the moment. It would be interesting if more people shared their rates of October orders repaid early. I'm wondering if loans at lower rates were repaid earlier too?
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