alender
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Post by alender on Nov 18, 2019 18:15:37 GMT
This seems like a catch 22 situation for RS, if lenders accept these rate changes given the risk to the lenders funds I am not sure how you can class these lenders as sophisticated, in which case RS should not reinvest the funds at the new rates when loans mature.
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Post by erniec on Nov 18, 2019 18:30:32 GMT
This has cemented my RateSetter plan - continue only with the one year until it is retired. Why would you do anything other when it is easy to get better than what the new Max will be, e.g., right now:  |
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Stonk
Stonking
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Post by Stonk on Nov 18, 2019 18:46:55 GMT
Why would you do anything other when it is easy to get better than what the new Max will be, e.g., right now:
To answer your rhetorical question, why would I not use the 1 Year market? Because it's been taken away from me!
I have been withdrawing all repayments for over a year, and this latest development does not really change anything other than the probability of my returning any time soon. The 4.0% (minus a fee if you want it back early), does not offer nearly enough room for the risk. I could potentially be back at 4.0% if the risk was significantly mitigated by the Provision Fund being larger, but it would have to be massively larger, such as maybe 3 times coverage (300%).
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Post by cinereus on Nov 18, 2019 18:54:04 GMT
They have completely lost their minds!
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aju
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Post by aju on Nov 18, 2019 19:02:05 GMT
while we want the platform to survive it would seem for the majority of people i.e the Ones who don't read forums or look at their account much the following has happened A new super duper account was launched with fanfare and new rates and puff about benefits.Now only One month later the rates have been cut but with the added "benefit" of a withdraw fee & auto reinvest having already passed at launch when surprise - surprise the rates were higher (but don't call me cynical  ) That's a bit cynical I feel.  Joking aside, looks that way to me too though.
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jester
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Post by jester on Nov 18, 2019 19:04:33 GMT
I've been assessing my P2P platforms to decide where to withdraw in order to reduce my overall P2P exposure .....
Decision made, Ratesetter set to WITHDRAW!
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steve66
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Post by steve66 on Nov 18, 2019 19:11:15 GMT
Need to change name - Rateset!
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Post by carpecyprinidae on Nov 18, 2019 19:26:20 GMT
Already withdrawn from Access in full, my money in other markets now set to go to cash account and will all be withdrawn. I have had five figures of my money in RS, no more
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aju
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Post by aju on Nov 18, 2019 19:38:52 GMT
I've been assessing my P2P platforms to decide where to withdraw in order to reduce my overall P2P exposure ..... Decision made, Ratesetter set to WITHDRAW! Yeah I'm teetering on the edge and if the 1Y doesn't give me more in the coming weeks then I'm considering pulling after the bonus comes to Mrs Aju and myself. We've been here a year now so need to wait for the 30 business days still. It's a bit a of hit cutting the rates so soon after they set them and a bit worry that under the hood things are not what they should be perhaps. Who knows the next few weeks could be telling.
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benaj
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Post by benaj on Nov 18, 2019 20:28:43 GMT
The new rates won't affect the way I am investing on RS. Since the introduction of new products, I haven't dipped in the Max / Plus.
I am sure many investors would make the most of the old products.
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Post by jono75 on Nov 18, 2019 20:41:40 GMT
This has cemented my RateSetter plan - continue only with the one year until it is retired. Why would you do anything other when it is easy to get better than what the new Max will be, e.g., right now: I agree, not touched the new ones, have only used 1yr getting around 5%, will use it until they inevitably take it away. I didn't plan on using the new accounts, even more sure now. I got 2.75 earlier in the year from Sharia bank gatehouse, admittedly not guaranteed rate but capital is FSCS protected. These accounts are not worth the risk in the wake of Lendy etc. See you at Lending Works if their shield stats goes up this month. It's tough being a saver, and getting worse.
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Post by df on Nov 18, 2019 21:07:30 GMT
Completely unattractive at these levels. My existing RS investments are locked in @ 6% and now in run-off mode. Mine are in the same run-off mode. It is comforting that this step has been taken in order for platform to survive. My worry is that there have been many changes on RS recently, too hectic, which makes me think that their strategies are not consistent.
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macq
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Post by macq on Nov 18, 2019 21:09:11 GMT
while we want the platform to survive it would seem for the majority of people i.e the Ones who don't read forums or look at their account much the following has happened A new super duper account was launched with fanfare and new rates and puff about benefits.Now only One month later the rates have been cut but with the added "benefit" of a withdraw fee & auto reinvest having already passed at launch when surprise - surprise the rates were higher (but don't call me cynical ) That's a bit cynical I feel. Joking aside, looks that way to me too though. i am not at all a bit cynical - i'v now moved on to full on cynicism 
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robski
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Post by robski on Nov 18, 2019 21:14:26 GMT
I was already doing the holding withdraw once a week I am not sure I will even bother logging in more than weekly now to drawdown RS I think are taking a big risk here, if they upset the market too much they may well cause bigger spikes, I am always happy to throw some cash their way under those circumstances I have always been suspicious that they have seen the big wadge of cash uninvested and thought damn we could lend that for less surely My cash will be going into a cash ISA next year probably. Going to ride it out, sooner or later we are going to see a recession or stocks crash and at that point any cash ISAs I have will be going to shares. The problem with P2P ISA is the tie in. Wont ever be coming back to one unless someone has a far more flexible model, or far better rates to support the tie in. |
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Post by bernythedolt on Nov 18, 2019 23:02:30 GMT
Since dropping their "market rate" loan matching model seven weeks ago , the (smoothed) mean weekly volume of loans written up by RS has fallen lower than at any time since mid 2018.
Hence this rate reduction to remain competitive and attract borrowers.
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