aju
Member of DD Central
Posts: 3,484 
Likes: 917
|
Post by aju on Dec 5, 2019 11:52:18 GMT
Mrs Aju's last loan on e/d 1Y paid up today and relent at a high rate. She wanted to move the funding to ISA but was not aware that removing the relent money order would actually withdraw her access to the 1Y. The same could happen to the 5Y I think.
What I think she should have done was made a small 2nd lend order for £20 to the 1Y and once that order was in the queue she could remove the 300+ order on the queue and send it to the ISA side.
This is a small thing in that she has the ISA 1Y and to be fair we are busily moving funds from the E/D to the ISA side. She has many loans in the ISA 1Y but it may help others who do not want to lose the option of the 1Y or 5Y products.
Warning: We have not proven this theory as yet so caveat emptor rules here.
The other thing is anyone with a very large loan that is being relent but is sold may want to remove some but not all of the money so it could work in that you make a small lend order then stop the large one - you can relend onto the old product as much and move the rest to your bank account etc.
|
|
ceejay
Posts: 971
Likes: 1,149
|
Post by ceejay on Dec 5, 2019 13:01:19 GMT
Mrs Aju's last loan on e/d 1Y paid up today and relent at a high rate. She wanted to move the funding to ISA but was not aware that removing the relent money order would actually withdraw her access to the 1Y. The same could happen to the 5Y I think. What I think she should have done was made a small 2nd lend order for £20 to the 1Y and once that order was in the queue she could remove the 300+ order on the queue and send it to the ISA side. This is a small thing in that she has the ISA 1Y and to be fair we are busily moving funds from the E/D to the ISA side. She has many loans in the ISA 1Y but it may help others who do not want to lose the option of the 1Y or 5Y products. Warning: We have not proven this theory as yet so caveat emptor rules here. The other thing is anyone with a very large loan that is being relent but is sold may want to remove some but not all of the money so it could work in that you make a small lend order then stop the large one - you can relend onto the old product as much and move the rest to your bank account etc. Interesting. So if you were down to your last 1 yr loan, without autorelend turned on, and that loan unexpectedly repaid (which as we all know can happen at any time), I presume that would mean you'd be instantly chucked out of the 1yr market?
|
|
|
|
Post by erniec on Dec 5, 2019 13:41:49 GMT
Our only RateSetter investments are in the 1 year and I have re-investment set at 5.5% on the assumption that this will ‘protect’ us from losing the privilege of future investment in this product.
|
|
robski
Member of DD Central
Posts: 772
Likes: 462
|
Post by robski on Dec 5, 2019 14:13:05 GMT
Mrs Aju's last loan on e/d 1Y paid up today and relent at a high rate. She wanted to move the funding to ISA but was not aware that removing the relent money order would actually withdraw her access to the 1Y. The same could happen to the 5Y I think. What I think she should have done was made a small 2nd lend order for £20 to the 1Y and once that order was in the queue she could remove the 300+ order on the queue and send it to the ISA side. This is a small thing in that she has the ISA 1Y and to be fair we are busily moving funds from the E/D to the ISA side. She has many loans in the ISA 1Y but it may help others who do not want to lose the option of the 1Y or 5Y products. Warning: We have not proven this theory as yet so caveat emptor rules here. The other thing is anyone with a very large loan that is being relent but is sold may want to remove some but not all of the money so it could work in that you make a small lend order then stop the large one - you can relend onto the old product as much and move the rest to your bank account etc. Interesting. So if you were down to your last 1 yr loan, without autorelend turned on, and that loan unexpectedly repaid (which as we all know can happen at any time), I presume that would mean you'd be instantly chucked out of the 1yr market? You do. When you have no active (I think an order counts as active) money in the now "delisted" markets you loose visibility to transact on them
|
|
aju
Member of DD Central
Posts: 3,484
Likes: 917
|
Post by aju on Dec 5, 2019 14:17:07 GMT
Interesting. So if you were down to your last 1 yr loan, without autorelend turned on, and that loan unexpectedly repaid (which as we all know can happen at any time), I presume that would mean you'd be instantly chucked out of the 1yr market? You do. When you have no active (I think an order counts as active) money in the now "delisted" markets you loose visibility to transact on them Yes i'd concur that robski is 100% correct here.
|
|
sl75
Posts: 2,092
Likes: 1,245
|
Post by sl75 on Dec 5, 2019 18:16:47 GMT
In the case of 5 year lenders, I'd have trouble believing that the market will still be open for investment by the time the last of my currently-active loans has repaid (expected some time in 2023/4 - exact month depending on which of them repay early).
There'll presumably come a point when 1Y an 5Y markets are "closed to new investment", with all investors forced to choose a new re-investment option or have the money accumulate in their holding account, and with remaining sales from 1Y and 5Y loans handled by the new markets.
I'd bet on that as being months rather than years.
|
|
aju
Member of DD Central
Posts: 3,484
Likes: 917
|
Post by aju on Dec 6, 2019 1:10:32 GMT
In the case of 5 year lenders, I'd have trouble believing that the market will still be open for investment by the time the last of my currently-active loans has repaid (expected some time in 2023/4 - exact month depending on which of them repay early).
There'll presumably come a point when 1Y an 5Y markets are "closed to new investment", with all investors forced to choose a new re-investment option or have the money accumulate in their holding account, and with remaining sales from 1Y and 5Y loans handled by the new markets.
I'd bet on that as being months rather than years.
that's partly why I am hitting the 1Y rather than the 5Y also the 1Y seems to be providing slightly better rates but it's just a game of luck gauging when the next burst will hit!
|
|
|
|
Post by cheapaschips on Dec 6, 2019 13:28:22 GMT
I only have money in the one year and five year markets and was beginning a draw down, but selecting holding account for all repayments.
I then changed to relend payments from both into the one year, but when i tried to lend the three figures in my holding account back into the one year
I found that I could not, only the new accounts were available, so it's good advice to set relend at your own rate to keep in them.
|
|
ceejay
Posts: 971
Likes: 1,149
|
Post by ceejay on Dec 6, 2019 16:05:07 GMT
I only have money in the one year and five year markets and was beginning a draw down, but selecting holding account for all repayments. I then changed to relend payments from both into the one year, but when i tried to lend the three figures in my holding account back into the one year I found that I could not, only the new accounts were available, so it's good advice to set relend at your own rate to keep in them. Not sure what you're saying there ... do you still have ongoing loans in the 1Y market? If you do, you should be able to place new lending orders with your holding account funds, although they don't make it obvious that you can. You need to go to the lending page and then click the little red arrow above the "standard" three markets to reveal the deprecated ones.
|
|
rscal
Posts: 900
Likes: 492
|
Post by rscal on Dec 7, 2019 9:38:09 GMT
I toyed with the idea yesterday evening of sticking a £10 stake on the 1 year for this precise purpose (w/ only a single 1 year investment currently remaining) but quickly thought better of it. My RS account will continue to draw down.
|
|
upperdeane
Member of DD Central
Posts: 493
Likes: 245
|
Post by upperdeane on Dec 7, 2019 10:01:07 GMT
Sadly I'm finding that a high percentage of my 5 year loans are repaying very early. I managed to get 6.5 percent earlier this year and invested a chunk of money which was spread across 8 or 9 loan contracts In the 5 year at 6.5‰. I'm down to only 2 of those contracts left less than 6 moths later and now rates are not as good in 5 year so I haven't reinvested there. I've invested money in 1 year instead. Do you think I have just been unlucky in having such a high percentage repay so early or maybe they refinanced to get a better rate or something?
Also are we saying that if my last two 5 year contracts paid off early I'd lose access to the 5 year product immediately for new investment?
|
|
ceejay
Posts: 971
Likes: 1,149
|
Post by ceejay on Dec 7, 2019 11:43:51 GMT
Sadly I'm finding that a high percentage of my 5 year loans are repaying very early. I managed to get 6.5 percent earlier this year and invested a chunk of money which was spread across 8 or 9 loan contracts In the 5 year at 6.5‰. I'm down to only 2 of those contracts left less than 6 moths later and now rates are not as good in 5 year so I haven't reinvested there. I've invested money in 1 year instead. Do you think I have just been unlucky in having such a high percentage repay so early or maybe they refinanced to get a better rate or something? Somewhat unlucky, I think, but these are statistically small numbers so anything could happen. I have several 5Y loans >6.5% and (touch wood) haven't had any early repayments recently. Of course, having said that... Yes, I believe we are.
|
|
ceejay
Posts: 971
Likes: 1,149
|
Post by ceejay on Dec 7, 2019 11:49:43 GMT
I toyed with the idea yesterday evening of sticking a £10 stake on the 1 year for this precise purpose (w/ only a single 1 year investment currently remaining) but quickly thought better of it. My RS account will continue to draw down. Not a bad idea, actually. Perhaps a few £10 stakes, placed on different days to reduce the chance of them ending up in the same loan. But this strategy is only for the non-amortising 1Y market: any casual readers thinking of doing the same in the 5Y should be aware that after one month the loan will fall below the £10 sellable threshold and you'll be stuck with it...
|
|
upperdeane
Member of DD Central
Posts: 493
Likes: 245
|
Post by upperdeane on Dec 7, 2019 14:05:30 GMT
Sadly I'm finding that a high percentage of my 5 year loans are repaying very early. I managed to get 6.5 percent earlier this year and invested a chunk of money which was spread across 8 or 9 loan contracts In the 5 year at 6.5‰. I'm down to only 2 of those contracts left less than 6 moths later and now rates are not as good in 5 year so I haven't reinvested there. I've invested money in 1 year instead. Do you think I have just been unlucky in having such a high percentage repay so early or maybe they refinanced to get a better rate or something? Somewhat unlucky, I think, but these are statistically small numbers so anything could happen. I have several 5Y loans >6.5% and (touch wood) haven't had any early repayments recently. Of course, having said that... Yes, I believe we are. Cheers, several months ago i transferred a chunk of money over into my ISA, hit the lend button all in one go at 6.5% rate - next morning it all got filled in just 8 loan parts. It was a fair amount of money in total from my transferred ISA so it wasn't really diversified as much as i was expecting and one of the loan parts alone was about £20k. I was expecting much smaller loan parts. Oh well. I've managed to get 5%+ in the one year with the early pay off 5yr money, which i'm happy with at this stage and I can hopefully access it for a "loss of interest" haircut i want. I'm going to have to keep and eye on my 1 year particularly as i don't want to lose access to that if loans pay off quickly. It got me thinking, If RS were crafty, they could close all our 1 year and 5 year loans overnight and make it look as if they were all paid off early and we wouldn't have access to those markets anymore. I'm not saying they would do that of course. Cheers for the input.
|
|
upperdeane
Member of DD Central
Posts: 493
Likes: 245
|
Post by upperdeane on Dec 7, 2019 14:07:01 GMT
I toyed with the idea yesterday evening of sticking a £10 stake on the 1 year for this precise purpose (w/ only a single 1 year investment currently remaining) but quickly thought better of it. My RS account will continue to draw down. Not a bad idea, actually. Perhaps a few £10 stakes, placed on different days to reduce the chance of them ending up in the same loan. But this strategy is only for the non-amortising 1Y market: any casual readers thinking of doing the same in the 5Y should be aware that after one month the loan will fall below the £10 sellable threshold and you'll be stuck with it... Good idea. I need to ensure i don't lose 1yr access.
|
|
