spiral
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Post by spiral on Jan 24, 2015 16:06:21 GMT
.... now since my monthly repayments come to about £5K I could chuck in £5K and withdraw the repayments, hmmm perhaps not what RS Towers had in mind ...... With that sum invested RS must love you anyway. What he doesn't say is that its in the monthly market
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Post by GSV3MIaC on Jan 24, 2015 20:06:25 GMT
As someone predicted earlier, most of the rates are now 0.1% or 0.2% down from their peaks, so now we need the borrowers to catch up with the lenders again, before more desperation sets in on 31 Jan.
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c88dnf
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Post by c88dnf on Jan 25, 2015 1:22:54 GMT
As someone predicted earlier, most of the rates are now 0.1% or 0.2% down from their peaks, so now we need the borrowers to catch up with the lenders again, before more desperation sets in on 31 Jan. They may be down from the peaks reached in the past couple of weeks, but looking at rates since last September, those obtainable today are higher in every market (except, arguably. the monthly one) than in December. An alternative view is that rates have normalised as available funds, boosted by the bonus offer, have flowed in to match extraordinarily high demand of £10M per week. If there is to be "desperation" at month end, it'll presumably be the same desperation that seems to afflict P2P marketplaces every month-end without fail, unless of course demand drops precipitately. Alas, on that my crystal ball is cloudy.
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Post by duncandive on Jan 26, 2015 14:32:44 GMT
I must be one of the lucky first few to get my funds in right at the start. So I'm happy with the rate I managed to get. HOWEVER I do now think (after seeing what has happened to the rates) that RS really should have put a much longer time frame on the matching of funds into loans. OK by all means limit the actual deposit period as they did, but once the funds are in why not just hold back the 1% for an individual until all those funds have been taken up. I just think that keeping things fair can only help to maintain a happy investor population. I am rather new to this, so maybe I have too much of a simplistic view. Therefore I am more than happy to be put right on anything I may have said.
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c88dnf
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Post by c88dnf on Jan 26, 2015 15:29:02 GMT
I must be one of the lucky first few to get my funds in right at the start. So I'm happy with the rate I managed to get. HOWEVER I do now think (after seeing what has happened to the rates) that RS really should have put a much longer time frame on the matching of funds into loans. OK by all means limit the actual deposit period as they did, but once the funds are in why not just hold back the 1% for an individual until all those funds have been taken up. I just think that keeping things fair can only help to maintain a happy investor population. I am rather new to this, so maybe I have too much of a simplistic view. Therefore I am more than happy to be put right on anything I may have said. I was also fortunate to have £10k immediately available and managed to bag 6.0% on the 22nd. On the other hand, my mother invested £10k earlier in January before the announcement and will get no bonus (though she did get 4.1% on the yearly market!). Probably not fair on my dear old mum, but then life often isn't. As to rates going down, well blow me down with a feather: the laws of supply and demand get proven once again! On RS we are free to make our decisions and decide at what rate to stake our investment. Those who panic or are impatient drag the rate down while others take a bet that the current rate of outflow will continue to exceed inflow and their chosen rate will eventually be met. Sometimes they are right: sometimes they are not. That's what makes RS such damn good fun!
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Post by GSV3MIaC on Jan 26, 2015 15:57:47 GMT
But the 6-7 day cash back deadline is put there precisely to encourage such panic. 8<.
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oldgrumpy
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Post by oldgrumpy on Jan 26, 2015 16:00:44 GMT
I was also fortunate to have £10k immediately available and managed to bag 6.0% on the 22nd.
Yes, you have to get in very fast with this kind of rate disruptive strategy. Before the announcement of the cashback, 5yr rates were just about to hit 6.2%, which I would have been happy with, and there was only about £200K+ in the pot up to 6.4%.
Your 1% cashback, shared between your 5 years will make your return around 6.2% (I'm sure someone can do the maths properly), but subsequently people will end up with less than if no offer had disrupted the market. I think we'll be back at 6.2% for five year by around 10 February.
Signed MysticGrump aka Grumpymeg
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vino
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Post by vino on Jan 26, 2015 17:06:03 GMT
My back-of-the-envelope maths made it equivalent to a bump of just under 0.5% on the 5 year market (so lending at 6% with cashback will give me close to the return I'd normally get from 6.5%). That was based on a 5 year loan of £5k, no reinvestment, basic rate tax on the interest and no tax on the cashback. I guess there's also an added bonus that the cashback should be paid very early on.
I was going to put money in anyway so I'll probably be slightly better off, even if the 5yr rate gets as low as 5.7%. The people who'll really lose out are the ones who are investing <£5k, or who are reinvesting automatically at "market rate". They'll feel the pinch from the rate drop and get nothing to show for it.
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Post by bracknellboy on Jan 26, 2015 18:06:09 GMT
I must be one of the lucky first few to get my funds in right at the start. So I'm happy with the rate I managed to get. HOWEVER I do now think (after seeing what has happened to the rates) that RS really should have put a much longer time frame on the matching of funds into loans. OK by all means limit the actual deposit period as they did, but once the funds are in why not just hold back the 1% for an individual until all those funds have been taken up. I just think that keeping things fair can only help to maintain a happy investor population. I am rather new to this, so maybe I have too much of a simplistic view. Therefore I am more than happy to be put right on anything I may have said. But what is 'fair' ? Fair to lenders, fair to borrowers, fair to RS. Its a market. Presumably RS recognised they had a bulge in the demand pipeline and have a view as to approximately where they need to keep rates to have a 'fair' balance between borrowers and lenders - where 'fair' has nothing to do with 'fair to borrowers and lenders' but rather keeps their product offering (both sides of the equation) where they can maintain sufficient supply/demand balance which hits their business plan. Market forces. Their aim presumably was precisely to get the immediate rates down for that purpose. Putting on a longer time frame to match wouldn't have achieved that. Whether rates head significantly back north again will depend on the pipeline which RS have: and only they have any insight into that at the moment.
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c88dnf
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Post by c88dnf on Jan 26, 2015 18:43:00 GMT
But the 6-7 day cash back deadline is put there precisely to encourage such panic. 8<. Maybe. Or it could be simply to put some money into a supply-constrained pipeline. Whether investors then panic is up to them. Just shy of £500k has shifted in the 5 year market and over £2M all told in the last 24 hours (as of 18.40 Jan 26th). I'm prepared to be patient for a few days and watch oldgrumpy be proved right!
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Post by Deleted on Jan 26, 2015 18:52:40 GMT
Just set your bid sensibly high and wait for February. Then there will be a nice calming down and fewer lenders and more borrowers so ........ ca-ching Famous story, years ago a Canadian manufacturer of small rolls of paper (used in the smallest room) decided that sales were down so they did an deal and dropped their prices to win more customers. Amazingly the rolls sold and the salesman who thought up the idea got a bonus. Next month they had no sales, so the salesman got the sack. Basically loo paper gets used at the same rate no matter what the price. Borrowing money much the same
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Post by Deleted on Jan 28, 2015 10:25:32 GMT
RS 5 year now down at 5.7% as people struggle to get their £10k on. Whata-mistaka-ta-maka.
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