|
Post by bgreenwood2000 on Aug 14, 2019 14:43:58 GMT
I had some money queuing in rolling, but behind £3.5m as I was hoping for 3.5%
Then I noticed last matched on 1Year was 4.8%, and decided to switch, because it's only a small amount and if I need it out quicker I can take the 0.3% hit and still be doing better than have it in rolling. So I set it at 4.8% and matched immediately - now Waiting for the Loan to be Formed.
A quick look at the queue - and there is ONE Borrower order asking for £580,539.95 at 4.8%, with the lowest Lender offer being 4.9%. Presumably my little bit has matched with this Borrower and will be Waiting for the Loan to be Formed until a heck of a lot more Lender offers come in at a lower rate.
But mostly..... ONE borrower is asking for over half a million quid???
|
|
|
Post by propman on Aug 14, 2019 15:57:39 GMT
1 year was historically mainly secured development loans on property so inevitably at the top end of loan sizes. These are not unusual. That is why rates fluctuate more on 1 year as the demand is lumpy.
|
|
|
Post by bgreenwood2000 on Aug 14, 2019 15:57:49 GMT
And... blimey... it's gone!!! No borrower orders currently, but lender money from 4.7% upward. Did you all pile in to 1 year when you saw my post?
|
|
|
Post by bgreenwood2000 on Aug 14, 2019 16:00:18 GMT
1 year was historically mainly secured development loans on property so inevitably at the top end of loan sizes. These are not unusual. That is why rates fluctuate more on 1 year as the demand is lumpy. Right.... fluctuate between what and what? I put a little bit into 1 year at 4.3%, a bigger bit at 4.5% and then this last little bit at 4.7%. Maybe I should have hung on for more.
|
|
r00lish67
Member of DD Central
Posts: 2,691
Likes: 4,048
|
Post by r00lish67 on Aug 14, 2019 17:17:04 GMT
And... blimey... it's gone!!! No borrower orders currently, but lender money from 4.7% upward. Did you all pile in to 1 year when you saw my post? No, I've commented on this before. It's some system peculiarity - a huge amount will just appear on 1 year and then disappear again as quickly as it came without any matches. No idea why.
|
|
Stonk
Stonking
Posts: 735
Likes: 658
|
Post by Stonk on Aug 14, 2019 20:13:00 GMT
Then I noticed last matched on 1Year was 4.8%, and decided to switch, because it's only a small amount and if I need it out quicker I can take the 0.3% hit and still be doing better than have it in rolling.
Careful: the fee is of 0.3% of the sum released, not a 0.3% reduction in interest rate. With 4.8% on 1 Year versus 3.4% on Rolling, you'll be worse off if you RYI in the first 78 days (give or take a couple).
|
|
|
Post by bgreenwood2000 on Aug 14, 2019 20:33:35 GMT
Oh, thank you for that pointer. I don’t anticipate needing to access it for quite some time, but it’s good to get that straight.
|
|
|
Post by df on Aug 14, 2019 20:52:39 GMT
I had some money queuing in rolling, but behind £3.5m as I was hoping for 3.5% Then I noticed last matched on 1Year was 4.8%, and decided to switch, because it's only a small amount and if I need it out quicker I can take the 0.3% hit and still be doing better than have it in rolling. So I set it at 4.8% and matched immediately - now Waiting for the Loan to be Formed. I don't use 1-year, but the other two. 4.8% is rather low for the effort. I tend to patiently wait until the rates go above 6%... Invest then and withdraw returns until the next feast. Feasts don't last for long, but debit card facility helps to act quickly.
|
|
|
Post by bgreenwood2000 on Aug 14, 2019 21:56:15 GMT
Is that 6% in 5 year?
And debit card - does that get money available immediately? Faster Payment seems to be within a couple of hours - might that be too long?
|
|
robski
Member of DD Central
Posts: 772
Likes: 462
|
Post by robski on Aug 15, 2019 8:45:00 GMT
I had some money queuing in rolling, but behind £3.5m as I was hoping for 3.5% Then I noticed last matched on 1Year was 4.8%, and decided to switch, because it's only a small amount and if I need it out quicker I can take the 0.3% hit and still be doing better than have it in rolling. So I set it at 4.8% and matched immediately - now Waiting for the Loan to be Formed. A quick look at the queue - and there is ONE Borrower order asking for £580,539.95 at 4.8%, with the lowest Lender offer being 4.9%. Presumably my little bit has matched with this Borrower and will be Waiting for the Loan to be Formed until a heck of a lot more Lender offers come in at a lower rate. But mostly..... ONE borrower is asking for over half a million quid??? You have made a few posts which go alng the lines of the above highlighted bit. I think you are misunderstanding how the site operates. RS is in effect in the middle, they control the matching, so the borrower offers are queued by them, they will match them to ANY lenders funds when they are ready. So there is no waiting on lenders to match the rates for borrowers, the borrower que is for actual borrowers, but the rate is nothing to do with what the actual borrower will be paying. Its not a true marketplace.
|
|
Stonk
Stonking
Posts: 735
Likes: 658
|
Post by Stonk on Aug 15, 2019 10:21:41 GMT
And debit card - does that get money available immediately? Faster Payment seems to be within a couple of hours - might that be too long?
Debit card deposits are available immediately. You need to use this method to take advantage of the spikes. That said, spikes have been less common recently.
The only problem with debit card is if the bank fraud detection gets in the way and the payment fails to authorise. For me, with Lloyds, this takes about 10 minutes on the phone to sort out, by which time I can have missed the spike I was aiming for. It might be worth making a few increasing deposits by debit card to get your card issuer used to the idea that you make payments to RateSetter, or perhaps try to deliberately hit their detection trigger with a non-critical deposit. Once you've manually authorised a payment of a particular size, the chances are future payments at the same level will go through fine.
|
|
|
Post by bgreenwood2000 on Aug 15, 2019 16:32:07 GMT
It's entirely possible I am misunderstanding it!! The borrowers' queue is the queue for actual borrowers.... so what are the rates next to those entries in the queue, then? Thinking about it... it's obvious that that's not the rate the borrower will be paying, they need to be paying more than the lender is receiving to give RS room to make a living. Is this a better way of understanding it: Borrower asks for loan of £X, RS's system risk-assesses the borrower, looks at how much money is currently being offered by lenders at what rates, and offers a loan at a rate that they can fulfill quickly and make a profit on? And RS will understandably use the cheapest money (lowest lender rates) first, because there's more margin for them.
|
|
|
Post by df on Aug 16, 2019 9:22:36 GMT
Is that 6% in 5 year? And debit card - does that get money available immediately? Faster Payment seems to be within a couple of hours - might that be too long? Yes, mainly in 5-year, but sometimes Rolling gets above 6% too. Yes, debit card transfers get your money available immediately.
|
|
|
Post by propman on Aug 16, 2019 11:02:09 GMT
It's entirely possible I am misunderstanding it!! The borrowers' queue is the queue for actual borrowers.... so what are the rates next to those entries in the queue, then? Thinking about it... it's obvious that that's not the rate the borrower will be paying, they need to be paying more than the lender is receiving to give RS room to make a living. Is this a better way of understanding it: Borrower asks for loan of £X, RS's system risk-assesses the borrower, looks at how much money is currently being offered by lenders at what rates, and offers a loan at a rate that they can fulfill quickly and make a profit on? And RS will understandably use the cheapest money (lowest lender rates) first, because there's more margin for them. basically right, except that I believe that the rates on the borrower orders are set by RS often less than the borrowers APR less the PF contribution and normal RS fees. That way they could match actual lender offers while still making their normal margin, but they leave the offer there so that "lend it now" money will match at a lower rate so they will need to match less higher rate loans and make a higher profit.
|
|