alanh
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Post by alanh on May 2, 2019 9:56:24 GMT
I seem to be getting these through on a daily basis at the moment......anyone else?
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Post by Ace on May 2, 2019 12:50:26 GMT
I seem to be getting these through on a daily basis at the moment......anyone else? No, none for me, which is a bit of a shame as I'm trying to passively withdraw.
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rscal
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Member is Online
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Post by rscal on May 2, 2019 13:02:40 GMT
I seem to be getting these through on a daily basis at the moment......anyone else? No, none for me, which is a bit of a shame as I'm trying to passively withdraw. I've noticed with my 1 year loans these tend to end exactly two days early - and that can be useful if the repayment due date is a Friday as it allows next day receipt in my bank account.
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scc
Member of DD Central
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Post by scc on May 2, 2019 16:34:58 GMT
Not much recently. I did get one very big one around 3 weeks ago. Am withdrawing when they come through as the rates aren't that appealing at the moment.
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aju
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Post by aju on May 2, 2019 21:33:25 GMT
Mrs Aju got one today for early repayment of a small amount of interest on one loan.
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benaj
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Post by benaj on May 3, 2019 5:48:52 GMT
I seem to be getting these through on a daily basis at the moment......anyone else? Loans not from the 5 year market?
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alanh
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Post by alanh on May 3, 2019 6:52:30 GMT
Every one of them from the 5 year market because that's the only one I invest in
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Stonk
Stonking
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Post by Stonk on May 3, 2019 8:37:39 GMT
I had a lot of early repayments 3 to 4 weeks ago, then nothing for a while, then several more this week.
It certainly helps with my intention of reducing my investment. In the 4 months since 1 January 2019, 38% of my principal has been repaid. As I've said before, an investment in the 5 Year market is on average considerably shorter than 5 years.
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spiral
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Post by spiral on May 3, 2019 9:22:57 GMT
Mrs Aju got one today for early repayment of a small amount of interest on one loan. I've had many of these over the previous few months.
What I don't understand is why/how someone would make an early repayment of interest only. Surely they would want to reduce the capital in order to lower the amount of future interest due. 
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tyrex
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Post by tyrex on May 3, 2019 9:34:02 GMT
RS are taking advantage of low rates in the 5 year market.
Yeah yeah, I know, they don't do this.
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alanh
Posts: 556
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Post by alanh on May 3, 2019 15:43:21 GMT
Another 3 early repayments today. Looking back over the past 3 months all the early repayments have been of loans >6%, mostly 6.4 and 6.5% so I think you have a point tyrex.
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ahowlin
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Post by ahowlin on May 3, 2019 17:38:01 GMT
Yes I get a lot of these as well. It's annoying. There seems to be a mountain of lower rate money available at the moment probably due to the new tax year.
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jester
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Post by jester on May 9, 2019 13:59:10 GMT
Well .... that's rather annoying!! I did an ISA transfer when RS had a bonus offer and managed to get it loaned out at 6%+ on the 5yr 47% of that has just repaid at once!!!! Let's call it half of my investment, I suspect that wasn't exactly diversified out much from the perspective of keeping it invested. Annoyingly now rates are lower I can't withdraw yet, under the terms of the bonus. Not impressed RateSetter! |
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ashtondav
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Post by ashtondav on May 9, 2019 14:21:06 GMT
Could be a long, cold, low interest rate summer. As I write £9.5M available under 6%.
No shortage of lenders unlike FC, where sellers are now waiting 45 days to sell their loans. But then they’ve just had their IT trash them.
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robski
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Post by robski on May 13, 2019 8:14:09 GMT
Well .... that's rather annoying!! I did an ISA transfer when RS had a bonus offer and managed to get it loaned out at 6%+ on the 5yr 47% of that has just repaid at once!!!! Let's call it half of my investment, I suspect that wasn't exactly diversified out much from the perspective of keeping it invested. Annoyingly now rates are lower I can't withdraw yet, under the terms of the bonus. Not impressed RateSetter ! As much as you don't need to RS would say diversified risk etc, I now manually chop up large amounts. List them at approx £20k intervals and they very rarely end up on the same loan. I suffered quite a lot of the issue you mention and also got the lower rates available timing when then repaid. I think the timing of the repays(from whereever) can quite often be around 6 months, and as such aligns quite well with the rate cycle they seem to have. A few months ago, most of my repayments were my lower rate ones, and I was immediately about to gain 0.5% or so relending. Now its the othre way, with often market rate being around 1% lower than the repayments. The other reason I like to chop up is that I like to keep a churn of cash. The more loans you have the more chance of a decent amount repaying that month. For now these are just reinvested, but if I needed some cash I could just wait for the loands to come in and then withdraw. I work on 2%, so I assume 2% of loans will repay in any one month, if you have 1000 £100 loans, then 20 will probably on average repay unexpectedly, and thats going to net probably around 75% of 20x£100 in cash inflow. This way no fees to extract cash from the portfolio. Its a bit of a gamble, but seems surprisingly consistent.
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