sd2
Member of DD Central
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Post by sd2 on Sept 16, 2019 9:33:50 GMT
I have set the reinvestment rate at 7.1 in the rolling market, yet I have just noticed it is forming a loan at 6.4? Anyone know why this happens. I know I can sell loans to get money out but I know doubt will end up selling a higher rate (lots of loans pay back on the same day with vastly different rates. Thanks
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Post by Deleted on Sept 16, 2019 9:48:11 GMT
Are you sure it's not an existing loan being reformed?
When a Rolling loan monthly repayment occurs, RateSetter notionally repays the full loan and creates a new loan for the remaining amount lent at the original rate. It seems a stupid way of doing it to me as it confuses investors and must be a real burden on its already slow systems.
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r00lish67
Member of DD Central
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Post by r00lish67 on Sept 16, 2019 10:02:01 GMT
Are you sure it's not an existing loan being reformed? When a Rolling loan monthly repayment occurs, RateSetter notionally repays the full loan and creates a new loan for the remaining amount lent at the original rate. It seems a stupid way of doing it to me as it confuses investors and must be a real burden on its already slow systems. Second this - there's 1 or 2 enquiries every week about this here, it's really not very clear.
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sd2
Member of DD Central
Posts: 621
Likes: 224
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Post by sd2 on Sept 16, 2019 10:31:12 GMT
Thanks I now understand...I think!
Annoyingly I have loans which have big variable interest rates which pay out on the same day
As in 5% to 9.4% and even 3.3% to 9.4%
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