macq
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Post by macq on Nov 25, 2019 16:58:50 GMT
My wife having read the RS answers in their post made the following point - that while we are not meant to look at p2p as a savings product and instead as an investment RS in the first answer mention their aim is to offer a more rewarding rate then savings and cash ISA (almost like a comparison which some say you should not do) Her point was if RS are aiming at the savings market how long can Plus last as savers are used to chasing the rate(i.e max) in a Bank/BS and do a fixed term/notice account or go for instant access but Plus is in a no man's land
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Post by propman on Nov 25, 2019 17:11:33 GMT
I find it worrying that they designed a product with little research of their investors. A review of LW even on these boards would show a significantly larger uptake than 25% in a longer product with a 1.5% fee differential.
It is possible that the change is rational from informed investors (at least in part). I believe few factored in the potential 5 year lock up in rolling before. In addition, it used to be the case that while longer loans were possible, that shorter loans were prioritised for funding from Access. This has now gone. So basically people were previously lending predominantly based on term. With this gone, they have to a larger extent prioritised return over lack of access fees.
I have only recently realised the rate implication of the changes. Yes 6% would take a 6% over GR move, but that is dependent on whether people decide to withdraw / increase investments slower than RS can grow the lending. However in addition, to lend in Max at 6% would mean first exhausting all those willing to lend in Access at 5%. Short of a scare, i would expect a recovery of lending in Access at 4.X% to stiffle anything approaching this rate in the current climate. I am prepared to leave some offers in in case the new year sees an improvement, but i don't expecty to lend much more on RS and will withdraw.
- PM
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Post by propman on Nov 25, 2019 17:15:30 GMT
My wife having read the RS answers in their post made the following point - that while we are not meant to look at p2p as a savings product and instead as an investment RS in the first answer mention their aim is to offer a more rewarding rate then savings and cash ISA (almost like a comparison which some say you should not do) Her point was if RS are aiming at the savings market how long can Plus last as savers are used to chasing the rate(i.e max) in a Bank/BS and do a fixed term/notice account or go for instant access but Plus is in a no man's land Plus is preferable for anyone lending around a year. I suspect there are people saving short term who would like (hopefully not require) access in the short but not immediate term. Also as only 1 month's interest is foregone on access, most lenders would not lose out, a big difference to potentially losing money is drawn earlier than expected.
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robski
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Post by robski on Nov 25, 2019 17:18:02 GMT
I find it worrying that they designed a product with little research of their investors. A review of LW even on these boards would show a significantly larger uptake than 25% in a longer product with a 1.5% fee differential.
It is possible that the change is rational from informed investors (at least in part). I believe few factored in the potential 5 year lock up in rolling before. In addition, it used to be the case that while longer loans were possible, that shorter loans were prioritised for funding from Access. This has now gone. So basically people were previously lending predominantly based on term. With this gone, they have to a larger extent prioritised return over lack of access fees.
I have only recently realised the rate implication of the changes. Yes 6% would take a 6% over GR move, but that is dependent on whether people decide to withdraw / increase investments slower than RS can grow the lending. However in addition, to lend in Max at 6% would mean first exhausting all those willing to lend in Access at 5%. Short of a scare, i would expect a recovery of lending in Access at 4.X% to stiffle anything approaching this rate in the current climate. I am prepared to leave some offers in in case the new year sees an improvement, but i don't expecty to lend much more on RS and will withdraw.
- PM
Not sure if I am reading what you are putting correctly Currently Max at 6% is the same queue as Access at 4%. The queue is shared for lenders and borrowers, just that Max and Plus pay a higher rate, but with a withdrawl fee
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Post by bernythedolt on Nov 25, 2019 21:32:34 GMT
[...] So basically people were previously lending predominantly based on term. I believe so, and posted this back on 4th October when the platform changed:- "Is it me, or does the new single pool of loan requests now remove all control we used to have over the duration (term) of a loan we were willing to accept? Previously we could choose whether we were lending for one year, five years or on a one month rolling basis. But, for new investors (and in due course all of us), no longer. […] We have lost the granularity we used to enjoy. Surely the term of a loan shouldn't be just a matter of luck? […] I am uncomfortable with this non-deterministic approach to lending"Before lending, it's natural to want to know exactly when you can expect to be paid back.
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macq
Member of DD Central
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Post by macq on Nov 25, 2019 22:39:04 GMT
My wife having read the RS answers in their post made the following point - that while we are not meant to look at p2p as a savings product and instead as an investment RS in the first answer mention their aim is to offer a more rewarding rate then savings and cash ISA (almost like a comparison which some say you should not do) Her point was if RS are aiming at the savings market how long can Plus last as savers are used to chasing the rate(i.e max) in a Bank/BS and do a fixed term/notice account or go for instant access but Plus is in a no man's land Plus is preferable for anyone lending around a year. I suspect there are people saving short term who would like (hopefully not require) access in the short but not immediate term. Also as only 1 month's interest is foregone on access, most lenders would not lose out, a big difference to potentially losing money is drawn earlier than expected. Way back in the mists of time about 6 weeks back i did post about Plus being ok for about a year but as you say in your other post it would seem people are looking at rate over term,so for the small difference in % rate at the new levels they maybe looking at Max over Plus.As a bigger gap in rates might make them question why but for such a small difference it might be a case of what the heck lets go higher. Also wonder for a lot of people who were not setting their own rate or following their account much etc and now have their money auto reinvesting whether the release fee situation has really clicked with them yet and so they are just looking at return rate having just checked a box after getting the new products email
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Post by propman on Nov 26, 2019 9:23:18 GMT
I find it worrying that they designed a product with little research of their investors. A review of LW even on these boards would show a significantly larger uptake than 25% in a longer product with a 1.5% fee differential.
It is possible that the change is rational from informed investors (at least in part). I believe few factored in the potential 5 year lock up in rolling before. In addition, it used to be the case that while longer loans were possible, that shorter loans were prioritised for funding from Access. This has now gone. So basically people were previously lending predominantly based on term. With this gone, they have to a larger extent prioritised return over lack of access fees.
I have only recently realised the rate implication of the changes. Yes 6% would take a 6% over GR move, but that is dependent on whether people decide to withdraw / increase investments slower than RS can grow the lending. However in addition, to lend in Max at 6% would mean first exhausting all those willing to lend in Access at 5%. Short of a scare, i would expect a recovery of lending in Access at 4.X% to stiffle anything approaching this rate in the current climate. I am prepared to leave some offers in in case the new year sees an improvement, but i don't expecty to lend much more on RS and will withdraw.
- PM
Not sure if I am reading what you are putting correctly Currently Max at 6% is the same queue as Access at 4%. The queue is shared for lenders and borrowers, just that Max and Plus pay a higher rate, but with a withdrawl fee I was referring to the new rates to be introduced as I was commenting on the impact of the change in rate NOT the new markets generally.
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sd2
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Post by sd2 on Nov 27, 2019 12:52:31 GMT
Damn only just noticed the change. Need to wake up. My thoughts are get a few thousand in 5 year or max at 5% before deadline. Is anybody getting anything above that at the moment??
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Post by carol167 on Nov 27, 2019 14:17:56 GMT
Damn only just noticed the change. Need to wake up. My thoughts are get a few thousand in 5 year or max at 5% before deadline. Is anybody getting anything above that at the moment??
Well, as someone who wouldn't accept less than 6%, I was already on draw down with the new 5% level. So no.
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sd2
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Post by sd2 on Nov 27, 2019 15:22:41 GMT
Damn only just noticed the change. Need to wake up. My thoughts are get a few thousand in 5 year or max at 5% before deadline. Is anybody getting anything above that at the moment??
Well, as someone who wouldn't accept less than 6%, I was already on draw down with the new 5% level. So no.
Are you saying nothing above 5% is available? As in I won't get anything above 5% if I set my own rate?
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Nov 27, 2019 15:47:31 GMT
Are you saying nothing above 5% is available? As in I won't get anything above 5% if I set my own rate? Highly unlikely. There is £6m at 5% in the Five Year queue as I write.
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