sd2
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Post by sd2 on Jul 8, 2019 10:26:01 GMT
I have set my reinvest rate at 5.8% (to undercut those on here who say they set at 5.9%!) I have a loan being formed at 8%. Me know understand! That don't happen on other markets...well not me.
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r00lish67
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Post by r00lish67 on Jul 8, 2019 10:26:52 GMT
I have set my reinvest rate at 5.8% (to undercut those on here who say they set at 5.9%!) I have a loan being formed at 8%. Me know understand! That don't happen on other markets...well not me. This will be an existing contract rolling over at the same rate - you presumably availed yourself of the juicy rates a little while ago?
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sd2
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Post by sd2 on Jul 8, 2019 10:55:29 GMT
I have set my reinvest rate at 5.8% (to undercut those on here who say they set at 5.9%!) I have a loan being formed at 8%. Me know understand! That don't happen on other markets...well not me. This will be an existing contract rolling over at the same rate - you presumably availed yourself of the juicy rates a little while ago? No 40 minutes ago? Only £32
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sd2
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Post by sd2 on Jul 8, 2019 10:58:55 GMT
Matched £32.36@ 8.0% Waiting for the loan to be formed
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r00lish67
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Post by r00lish67 on Jul 8, 2019 11:10:13 GMT
Matched £32.36@ 8.0% Waiting for the loan to be formed Yep, and I have some matched at 8.9%, despite my re-invest rate being 8.5% and there being £2.3m of lender offers in front of that rate. I can't believe I bothered to do this, but here's your post where you say you got 8% on rolling. This is likely that contract 'rolling' over, or another one you had in that golden spell.
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Post by moneymagnet on Jul 8, 2019 19:52:34 GMT
I have to admit that I am puzzled by the rolling market as well. With the high rates recently, I threw some funds into the rolling market at over 6%. Then I set my reinvestment rate to 6.8%. However, I've had two repayments reinvested at 6.4%. Not really too upset at getting 6.4%, but I would really like to understand how that's possible. Has this happened to anyone else?
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r00lish67
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Post by r00lish67 on Jul 8, 2019 19:56:39 GMT
I have to admit that I am puzzled by the rolling market as well. With the high rates recently, I threw some funds into the rolling market at over 6%. Then I set my reinvestment rate to 6.8%. However, I've had two repayments reinvested at 6.4%. Not really too upset at getting 6.4%, but I would really like to understand how that's possible. Has this happened to anyone else? Do you have e-mail notification turned on? If so did it read something like: "Dear sexy robot, Your reinvestment order O51XXXXXX for £XX at 6.4% in the RateSetter market within your Everyday account has been matched....." If so, this is just your previous 6.4% investments rolling over. If not, I'm sure I have no idea.
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star dust
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Post by star dust on Jul 8, 2019 20:59:56 GMT
This is just normal 'rolling' going on 
For at least a year iirc, loan parts in the rolling market are pegged to the term and rate of their underlying loans. If you look at your rolling money on loan – here when you are logged in -
- you will see a list of your rolling loans and in the fourth column “Months Remaining” it’s possible this will vary from 1 to 61. When the date of the next repayment arrives – as displayed in the “Next Repayment” column – third from the right – your loan will either re-pay entirely or the remaining capital will be re-matched at the loan’s underlying rate. It's very common for this to take a while (hours) and in the interim your loan sits matched but waiting to be formed; once 'matched and formed' you will see it again with a new contract number and one less month’s term and next months repayment date. The loan number will be the same. Don’t forget that at any point during the term of the loan it could repay all or part capital and/or interest.
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Post by befuddled on Jul 8, 2019 21:45:46 GMT
How about this explanation....
The rolling market is essentially an "up to 5 year duration" market. The term "rolling" is a historical inaccuracy !
Whatever rate you initially got, you keep this rate for the duration of the loan, irrespective of any re-investment settings.
So if you got 6.8% last month, every month these loans will roll over at 6.8% until they're paid off (up to 5 years)
So the only difference between rolling and 5 year is:
No exit fee to leave rolling 1.5% fee to leave 5yr
If you pull money out of rolling you have to wait 2 weeks before you can re-invest.
The underlying "mechanics" are different, as Ratesetter keep changing the rules and had to superimpose a new regime on an old system, but as far as we investors are concerned - that's it...!
The fact that the loans "roll over" every month is academic, you can't stop them rolling over and you can't change the rate - you can only pull your money out, but that is unconnected to any monthly cycle....
Have I missed anything ?
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Stonk
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Post by Stonk on Jul 9, 2019 11:40:23 GMT
I would add something, just for the purpose of completeness and to remind everyone that the Rolling market really is no longer simple at all :
On the Rolling market, beyond your control, you can get matched to one-shot (non-amortising) loans of up to a year, and they behave completely differently.
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Post by propman on Jul 9, 2019 12:16:10 GMT
I would add something, just for the purpose of completeness and to remind everyone that the Rolling market really is no longer simple at all :
On the Rolling market, beyond your control, you can get matched to one-shot (non-amortising) loans of up to a year, and they behave completely differently.
They merely roll over in entirety for up to 11 months then are repaid in full.
Basically the entries in our accounts are misleading and it is the net effect that has really happened!
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Post by Deleted on Jul 9, 2019 13:03:15 GMT
You can also get interest only loans where interest is received each month with all the capital repaid at the end.
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robski
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Post by robski on Jul 10, 2019 9:16:31 GMT
You can also get interest only loans where interest is received each month with all the capital repaid at the end. So those definately sound like property/business development loans
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