alender
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Post by alender on Sept 9, 2019 10:35:00 GMT
Have to agree, got out a time ago as the last of my loans matured. Where did you put your money and why did you choose that particular destination(s)? Most went to Growth Street and Assetz Capital 30 day account, I feel more comfortable with them (for now at least) partially because they are willing to answer my questions, offer a simple product with Provision Funds and I am not messing about having to keep an eye on rates and reinvesting repayments.
Some money went into P2P Global shares which pay dividend interest. Also very interested in REIT companies like Primary Health Properties PLC and Assura PLC which own health care properties and rent these out, these pay high yields and dividends are usually not subject to dividend tax.
Whatever you chose please DYOR.
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Stonk
Stonking
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Post by Stonk on Sept 9, 2019 11:10:20 GMT
I am exiting RS (since June '18) and seeing my balance dropping nicely courtesy of the ever-reliable early repayments. I just don't want to eek it out for the estimated three further years before my 5 year loans all unavoidably pay down in the normal way due to the sub £10 loan issue. It occurs to me that since my sub-£10 loans are less than the fee of 1.5% of my realisable (>£10) loans, I could make then an offer to waiver some or all of the fee and just keep the unrealisable loans as 'asets' for themselves. Now can RS under FCA rules (etc) hold loans?
If this were possible I might do this.
Even if it is permitted and theoretically possible, it is likely to be administratively implausible for RS to do it. I very much doubt there is functionality in their software to accomplish what you suggest, so it would have to be done bespoke, manually. All that for zero profit for them, given your alternative is to pay the 1.5% anyway!
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star dust
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Post by star dust on Sept 9, 2019 11:15:47 GMT
I am exiting RS (since June '18) and seeing my balance dropping nicely courtesy of the ever-reliable early repayments. I just don't want to eek it out for the estimated three further years before my 5 year loans all unavoidably pay down in the normal way due to the sub £10 loan issue. It occurs to me that since my sub-£10 loans are less than the fee of 1.5% of my realisable (>£10) loans, I could make then an offer to waiver some or all of the fee and just keep the unrealisable loans as 'asets' for themselves. Now can RS under FCA rules (etc) hold loans?
If this were possible I might do this.
I imagine it would be highly unlikely they would do this, but then there's the old adage if you don't ask you won't get. However, they have done this before and indeed I closed my account (the only option) handing them a sizeable amount of sub-£10 loans in the mainly 5 year market. Those were the giddy days of not having to pay an exit fee when you didn't accept their new t&c's, I think it was a case of once bitten twice shy on RS's part, as I don't think it's ever been offered since. Now iirc the FCA rules on platforms owning loans have changed subsequently, but it's possible RS still have some of mine as I still get the occasional 'your loan has repaid early' emails for them, and indeed got one only last week for the first time in a long while, that caused me a bit of initial confusion with those relating to my new account.
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Post by p2plender on Sept 9, 2019 11:41:53 GMT
I recall they built their biz ethos on simplicity and clarity, the two very things that have now evaporated.
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ashtondav
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Post by ashtondav on Sept 9, 2019 11:46:38 GMT
I am exiting RS (since June '18) and seeing my balance dropping nicely courtesy of the ever-reliable early repayments. I just don't want to eek it out for the estimated three further years before my 5 year loans all unavoidably pay down in the normal way due to the sub £10 loan issue. It occurs to me that since my sub-£10 loans are less than the fee of 1.5% of my realisable (>£10) loans, I could make then an offer to waiver some or all of the fee and just keep the unrealisable loans as 'asets' for themselves. Now can RS under FCA rules (etc) hold loans?
If this were possible I might do this.
You may be right but I have to say that despite the irritation RS is the most lucrative of my “black box” accounts. Zopa, AC, FC have all disappointed but RS chugs along, For now, delivering 6.1%. Only bettered by the much younger LWorks. I do admit the AC access accounts are also reassuring, and of course have asset backing and a PF (however enigmatic and mysterious it is). i’ll jump At the first sign of unemployment increasing for a couple of months. Until then I just reinvest at 6% and watch the returns roll in, and as long as that happens I don’t give a fig about irritating emails and a day glo website
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Sept 9, 2019 14:10:51 GMT
You may be right but I have to say that despite the irritation RS is the most lucrative of my “black box” accounts. I don't think RS is quite at the black box stage yet but that day is becoming ever closer, and inevitable in my view.
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robski
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Post by robski on Sept 9, 2019 16:09:02 GMT
I never got how RS allocated loans to one of the markets as opposed to the others. So ignoring that I guess the new queue is going to be sorted by % as now. If (my assumption is they will) they send all funds to the one big pot then they will virtually never (probably) lend to the max for example. Assuming people dont attempt to dramatically undercut the 3/4/5%. Then you would expect most access to be around 3 to low 3s, only if they got to approaching the 4s would the next "grade" start to be lent, then it would need to approach the 5s to get to the max product. I have read it all more than once and cannot figure out if 1 and 5 year will be available to invest in or in wind down. If any competition were ever up for a reward for anti plain english RS would be in with a shout. How they manage consistently to write in English that is so open to interpretation and failure to get across a relatively simple message is beyond me. If I cant achieve close to 6% without only minor cash drag I am out. Quoting myself I know. I re read today and think the 1 and 5 years are being phased out. The terminology seems to be in regards existing investments, like it was when 3 year was removed. Existing investments carried on you just couldnt invest any more. I am now a bit more bemused by the new pool. I was thinking the pool would just list everything in order of % for lenders and match from the bottom up. But that wouldn't make sense, no one practically would match anything at max. Unless rates exceeded 8% you would always match at instant since you could list 5.8% access, 5.8% plus or 5.8% max. Why would you list for anything other than access. So now i am wondering, are they going to use the 1% differentials as the matching, so for example 3.3% Instant, would match alongside 4.3% plus alongside 5.3% max So maybe the queue would change from a set % to a % deviation from the going rate? Eg the queue would say show +0.1, +0.2, +0.3 etc where the +0.1 at current rates would be a total of all the 3.1%, 4.1% and 5.1% across the three markets? If they want some sort of liquidity tie in then they will need to match at different rates, or the longer MAX will never be used, it would be pointless matching at say 6% Max of Access was at 5.9% when you consider the fee for withdrawing. I have got myself really intrigued how they are actually going to make this work now. Plus of course the simple 1% rate differences between bands wont necessarily match lenders perceived differences. They may need to change the gaps if they are genuinely looking to tie in capital for differing periods. I mean to me right now the rolling is seemingly low 3%s and the 5 year mid to high 5s, the 5 year varies more that the rolling. I am not so sure the 5 year would function right now in comparison to the new system if the differential was locked at 2%.
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Post by propman on Sept 9, 2019 20:37:21 GMT
Alternatively, they could fix the proportion of each type they wanted for each type of loan and then match those proportions. Would still give greater pool as they would be free to vary the proportions as required. This would then leave an issue of how to match any retained 5 / 1 year, so perhaps you are right. Alternatively they could align 5 year with max and 1 with plus, although 1 year would need to be limited to bullet repayment loans or matching mixed bullet and repayments like they did with the original 1 year loans.
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Post by df on Sept 9, 2019 21:34:00 GMT
Alternatively, they could fix the proportion of each type they wanted for each type of loan and then match those proportions. Would still give greater pool as they would be free to vary the proportions as required. This would then leave an issue of how to match any retained 5 / 1 year, so perhaps you are right. Alternatively they could align 5 year with max and 1 with plus, although 1 year would need to be limited to bullet repayment loans or matching mixed bullet and repayments like they did with the original 1 year loans. Bullet repayment is already happening on Rolling (I have one 16 months bullet loan). They couldn't get enough investors' funds to feed 1 year demand and started putting 1 year bullet loans on Rolling market. I guess they can just simply spread bullet loans across all three new products. It's a new model and I don't think the existing 1&5 year products are fitting well in this. Sensible policy would be to let them run down and not aligning them with plus&max (imo).
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Post by propman on Sept 12, 2019 10:01:46 GMT
Just received clarification E-mail:
Ronak (RateSetter) Sep 11, 15:31 BST Hello XXX,
Thank you for your email.
With the new products, you will still be to view the details of each individual contracts and the outstanding term remaining on them. Investors will also have the ability to set their own rate on the funds that they choose to invest and also for the repayments that get reinvested.
You will still be able to see the unmatched contracts in the new products and cancel the contracts without incurring the Release Fee. Currently we are managing three pool of markets and we will continue to manage them even after the 3rd of October with the new products and the 1 year and 5 year as per the supply and demand of investors and borrowers.
We will still publish the Market Rates for the 1 year and 5 year market on the website after the new products are launched and you will still be able to see the Market Data page to view the lend offers and borrower orders we have available for the new products as well as for the 1 year and 5 year market.
I hope that helps. If you have any further questions, please let me know.
Kind regards, Ronak RateSetter Customer Service
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Post by Financial Thing on Sept 13, 2019 3:21:28 GMT
I have a meeting scheduled with some of the Ratesetter powers that be Wednesday Sept 18th.
I'll be asking for clarification about how the legacy products will work (and for how long), how the matching queue will operate, how the manual ratesetting will work (what happens if one cancels unmatched money in the new products etc.) and why they changed the products.
I'm happy to present any additional questions for you. Just send me a message sooner rather than later.
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macq
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Post by macq on Sept 13, 2019 7:07:48 GMT
I have a meeting scheduled with some of the Ratesetter powers that be Wednesday Sept 18th. I'll be asking for clarification about how the legacy products will work (and for how long), how the matching queue will operate, how the manual ratesetting will work (what happens if one cancels unmatched money in the new products etc.) and why they changed the products. I'm happy to present any additional questions for you. Just send me a message sooner rather than later. Good Luck - think you may have covered it in all your points but for me i would ask why they are marketing what looks like instant accounts (forget the fancy names) where on Two of the levels in theory you will need to pay a fee to get your own money. Nobody i can think of in their competition does this i.e Banks & BS have fixed term and notice accounts @ 30/90 days with a chance of fee free withdrawals.So as a business how will this help moving forward? as the terms and marketing to new people who have not joined will hardly be a winner in this day & age and to those already invested is annoying and may force them to leave. I would hate to suggest it to them but it feels they did not have the guts to bring in a upfront fee (which may be needed for company profit) and this is some half-arsed way round it P.s may have missed it but will they be giving rate updates like LW or how long a lead time of rate change notices?
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Post by propman on Sept 16, 2019 13:00:17 GMT
What is the reason for the drop in rates over this last week?
On Friday/Saturday, RS made a significant volume of new loans without shortening the 5 year queue significantly. I can only assume that they opened the longer loans to the Rolling Market. the result of this is that from a fairly typical situation on Wednesday evening, with an average week's lending less than usual appears to have been lent on the 5 year market and not much if any was lent at 5.8% or above. I wonder whether this is the forerunner of life once they start the new products?
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Post by cinereus on Sept 16, 2019 13:48:47 GMT
My current average invested funds in rolling rate is above 6%. Will this change mean that they will renew at 3.0% over the next month after October when it changes to Access? My question too keystone. All my rolling money is invested at 6-8% and it seems to roll each month into a new one month loan at that same original rate. Thus I have a portfolio of rolling money that maintains a rate of 6-8%. If these now roll into loans at 3% then after one month of this new system I will have a portfolio of rolling money all at 3%, in which case I am without any shadow of a doubt OUT. Sorry but can I ask how you're getting close to 6% on the rolling market. Even with massive spikes I don't see how this is attainable.
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r00lish67
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Post by r00lish67 on Sept 16, 2019 13:51:56 GMT
My current average invested funds in rolling rate is above 6%. Will this change mean that they will renew at 3.0% over the next month after October when it changes to Access? My question too keystone. All my rolling money is invested at 6-8% and it seems to roll each month into a new one month loan at that same original rate. Thus I have a portfolio of rolling money that maintains a rate of 6-8%. If these now roll into loans at 3% then after one month of this new system I will have a portfolio of rolling money all at 3%, in which case I am without any shadow of a doubt OUT. Sorry but can I ask how you're getting close to 6% on the rolling market. Even with massive spikes I don't see how this is attainable. There was a spike a month or two ago and rates went crazy. Likewise, my avg. rate is 8.2% in rolling at the moment. Won't last, obvs.. Edit: Sorry, just re-read your post and my answer wasn't particularly helpful. Why wouldn't a spike explain it? I don't think rolling is at all worth it at circa 3%. At 9%, hell yes. If one invests only in those very rare spikes, and I'm sure I'm not the only one, then it's going to happen.
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