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Post by bornconfused on May 8, 2020 4:04:09 GMT
Out of curiosity I just tried submitting a loan request (£3k over 3 years) and got the below reply.
Unfortunately we can’t offer you a loan today. This is based on your personal information provided. However, our partner, Freedom Finance may be able to help.
I tried the same loan request about a year ago to see what interest rate they would offer, and got accepted no problem. I'm retired so my finances haven't been affected by coronavirus (apart from I have money tied up in Ratesetter that I can't withdraw!).
So it seems either Ratesetter have stopped lending, or maybe have very little money to lend and are being extremely choosy who to lend to?
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Post by df on May 8, 2020 8:03:40 GMT
Out of curiosity I just tried submitting a loan request (£3k over 3 years) and got the below reply. Unfortunately we can’t offer you a loan today. This is based on your personal information provided. However, our partner, Freedom Finance may be able to help. I tried the same loan request about a year ago to see what interest rate they would offer, and got accepted no problem. I'm retired so my finances haven't been affected by coronavirus (apart from I have money tied up in Ratesetter that I can't withdraw!). So it seems either Ratesetter have stopped lending, or maybe have very little money to lend and are being extremely choosy who to lend to? In the first Coronavirus related e-mail (16th March) they said that they've reduced lending to prioritise access. So perhaps "extremely choosy" is a more likely scenario, particularly in consumer category.
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Post by cinereus on May 8, 2020 10:24:32 GMT
Out of curiosity I just tried submitting a loan request (£3k over 3 years) and got the below reply. Unfortunately we can’t offer you a loan today. This is based on your personal information provided. However, our partner, Freedom Finance may be able to help. I tried the same loan request about a year ago to see what interest rate they would offer, and got accepted no problem. I'm retired so my finances haven't been affected by coronavirus (apart from I have money tied up in Ratesetter that I can't withdraw!). So it seems either Ratesetter have stopped lending, or maybe have very little money to lend and are being extremely choosy who to lend to? In today's email they explicitly said they are still lending.
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starfished
Member of DD Central
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Post by starfished on May 8, 2020 10:53:47 GMT
I suspect any non-standard person who cannot be assessed automatically (rather than manually) is going to have difficulties getting credit/mortgage in the short term. I'd put a retiree even with pension income in the "non-standard" bucket...
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Post by shanghaiscouse on May 8, 2020 11:16:20 GMT
How can they lend when they have a massive backlog of return your investment requests? Any money should be getting paid back to lenders. Their system is out of equilibrium. This is what caused Funding Circle to start securitising packages of loans to institutions, not sure why RS have not gone down this path yet but once they do, that's the end as the institutions, who buy £200m at a go, become the most important player and the retail investors secondary.
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puddleduck
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Post by puddleduck on May 8, 2020 11:40:27 GMT
How can they lend when they have a massive backlog of return your investment requests? RYI requests rely on new money coming in, as well as repayments from existing loans. If the platform ceases writing new loans it will be more difficult to be seen as as viable home for new lenders money. Without new money coming into the platform, you need to be prepared for loan repayments to go to term - i.e up to 60 months. Unless you want Ratesetter to wind down, it's important to return to something resembling normality and that includes lending again.
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robski
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Post by robski on May 8, 2020 22:38:26 GMT
My suspicion is that any EDI type loans still happen, so mobile phone funding etc You dont just turn this on and off, you would break commercial agreements and piss of partners if you did, so I suspect this still happens and will continue as long as RS want to remain
What they can do easily, is turn off direct loans, so personal loans directly assessed and written by RS
Also typically businesses dont like to turn off the taps on things that were in progress since that creates bad feeling, mortgage lenders for example not accepting new applications, but honoring offers already made, I would expect RS are the same, but this should by now be minimal since most of their loan book would be loans you would expect to draw down very quickly after approval. BUt maybe some of the property ones could be longer between approval and actual drawdown, again not honoring those could mean brokers etc wouldn't want to deal with RS in the future.
I don't think I have ever read anything that says RYI takes precedence over anything, despite some lenders seemingly wanting it to be that way. RS have as much if not more responsibility to those whos capital they are still writing to loans that they ensure the business is viable vs people wanting to withdraw their cash IMO. It would be mis selling to allow someone to invest if the business going forwards was not viable.
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Post by inquiete on May 9, 2020 13:52:19 GMT
I have submitted RYI's in relation to my money on the platform. Are there any circumstances in which investors who have asked for their money back could see their funds relent to new borrowers against their wishes? Surely this would be against the spirit of the platform that a person who wants their money back is matched agst a new borrower just to help keep the platform going. Appreciate any words of wisdom....
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Post by shanghaiscouse on May 10, 2020 10:54:32 GMT
How can they lend when they have a massive backlog of return your investment requests? RYI requests rely on new money coming in, as well as repayments from existing loans. If the platform ceases writing new loans it will be more difficult to be seen as as viable home for new lenders money. Without new money coming into the platform, you need to be prepared for loan repayments to go to term - i.e up to 60 months. Unless you want Ratesetter to wind down, it's important to return to something resembling normality and that includes lending again. THat's the spirit, please do start lending again......so I can get my money out quicker!
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on May 11, 2020 17:45:54 GMT
Exactly the only logical plan is to lend as this drives organic releases too. I would rather a strong loan book with realistic releases (please communicate RS) VS a rush for the exit and a book that shrinks placing more pressure on the pf. we need to give RS time to navigate the storm - it is what we signed up to. but they really need to consider their comms and i think the product Access product is about as accessible as an all inclusive holiday to North K.
In short they are lending but i suspect the loan criteria is tight given the forecasts, being fair would you lend casually?... I can imagine this is why we want our money back given the risk of past lenders... so it is hand in hand
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Post by bikeman on May 16, 2020 20:23:34 GMT
They're going to have trouble maintaining lending - as soon as they announced a 'stabilisation period' most investors wacked up their lend rates and put in withdrawal requests.
Shot themselves in the foot there.
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ceejay
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Post by ceejay on May 17, 2020 7:43:59 GMT
They're going to have trouble maintaining lending - as soon as they announced a 'stabilisation period' most investors wacked up their lend rates and put in withdrawal requests. Shot themselves in the foot there. I wouldn't be so sure of that. Perhaps a lot of the investors who hang around here, but we're not representative. I wouldn't be at all surprised if the large majority of lenders were and remain on autopilot.
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jcb208
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Post by jcb208 on May 17, 2020 8:37:15 GMT
With a loan book of say 800 million and ratesetter say 9 out of 10 investors have continued to invest so as an average that means that 80 million is in the release queue of which 40 million has been paid out so should be about 40 million left in the queue , which we know is unrealistic. Maybe one day we will know what the total RYI was
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wuzimu
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Post by wuzimu on May 17, 2020 11:05:57 GMT
I have a slightly different spin on the metrics..... I believe there are about 30k 'active' investor accounts (ie average individual has £25k with RS). This number is derived by comparision of total vs active accounts from other P2P platforms where I do know the actual ratio.
Since mid March , so far there are just over 30k RYI's placed.
Using the assumption that each active lender has ~2 RYI's placed (as they have more that one product), so I assume about 50% of lenders have RYI'd their account, so that means that about 40-60% of RS loan book is queued for RYI (ie £400m)
Therefore about 10% of RYI requests have been filled (£40m/£400m).
In that case nearly everybody with Access products are now locked in for the ride and can expect most returns to come from interest / amortisation / loan repayments, rather than RYI.
The eventual outcome depends on govt policy w/ref covid and as important the real quality of RS loan book.
Our borrowers are supposed to be high quality borrowers who could have got a bank loan for their personal loan. We must pray thats true. I have no reason to think it isnt (yet) and certainly I do not think RS loan book can be compared to FC loanbook which some are doing. RS and FC operate in different markets with a very different average loan size.
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ceejay
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Post by ceejay on May 17, 2020 11:11:59 GMT
I have a slightly different spin on the metrics..... I believe there are about 30k 'active' investor accounts (ie average indicidual has £25k with RS). THis number is derived by comparision of total vs active accounts from other P2P platforms where I do know the actual ratio.
Since mid March , so far there are just over 30k RYI's placed.
Using the assumption that each active lender has ~2 RYI's placed (as they have more that one product) then that means that about 40-60% of RS loan book is RYI (ie £400m)
So about 10% of RYI has been filled.
In that case nearly everybody with Access products are now locked in for the ride and can expect most returns to come from interest / amortisation / loan repayments, rather than RYI.
The eventual outcome depends on govt policy w/ref covid and as important the real quality of RS loan book.
Our borrowers are supposed to be high quality borrowers who could have got a bank loan for their personal loan. We must pray thats true. I have no reason to think it isnt (yet) and certainly I do not think RS loan book can be compared to FC loanbook which some are doing. RS and FC operate in different markets with a very different average loan size.
Surely this assumption only works if everyone that has issued RYIs has in fact issued them for the whole of their holdings? Taking myself as a sample of one, I have two RYIs currently pending which add up to roughly a third of my investment. I wouldn't like to presume what the average is but I'm pretty sure its not 100%.
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