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Post by GSV3MIaC on Feb 25, 2015 19:21:44 GMT
Our biggest "institution" is I think the British Business Bank, and you get the same deal as them. Probably better as you actually have more control (don't ask me technical specifics of the BBB process, I won't tell you). Kevin. Just assure us that they can't / don't influence the market rate(s) and we'll go to bed happy. I can't be doing with competing with my own tax money... 8>.
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ikorodu
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Post by ikorodu on Feb 25, 2015 19:37:13 GMT
That's good to know.
I feel more special now!
Thanks for taking the time to answer.
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Post by westonkevRS on Feb 25, 2015 20:53:21 GMT
Our biggest "institution" is I think the British Business Bank, and you get the same deal as them. Probably better as you actually have more control (don't ask me technical specifics of the BBB process, I won't tell you). Kevin. Just assure us that they can't / don't influence the market rate(s) and we'll go to bed happy. I can't be doing with competing with my own tax money... 8>. They can't and don't influence the market, other than that they bring liquidity. In theory more liquidity (i.e. lenders chasing borrowers) could influence the markets downwards. But other that that, you have my word that they cannot and do not influence the market. Kevin.
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Post by bobthebuilder on Feb 26, 2015 6:21:01 GMT
One question I have in looking at the date of first payment, unless I am misunderstanding what it is saying, there are a number of loans which have a first payment date some way into the future. For example roughly £11m not due to start paying till 2016 and a total of roughly £44m not due to start paying May 2015 to Feb 2016. So if I am involved in one of those loans how does it work? Do I get my monthly repayments in the meantime from the Provision Fund or do I have to wait till the first repayment date? Sorry if I am misreading the data or it is already explained elsewhere. Sounds to me as if these are one year loans where no interest or capital repayments are made until maturity.
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Post by bobthebuilder on Feb 26, 2015 6:35:27 GMT
Whilst we are on the subject of openness... Is there any published data on the spread of investments made by investors? I.e. mean, mode and median invested per lender or can you give ranges eg there are 1000 investors in total and the top 20% of investors account for 80% of the total. Some on here are clearing investing much larger sums than others (I'm small fry!), and it would be interesting to see the split of investors. To some extent I don't think this is an unreasonable question. As a risk averse sort of chap I wanted similar information when I first signed up to RS, mainly so that I could get an idea of other investors' perception of the risks involved as measured by the average amount they were prepared to commit to the platform. RS do in fact provide the average investment amount here: members.ratesetter.com/ratesetter_info/ratesetters.aspx (currently £19,450, which I presume is a mean rather than median amount)
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spiral
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Post by spiral on Feb 26, 2015 16:36:33 GMT
To some extent I don't think this is an unreasonable question. As a risk averse sort of chap I wanted similar information when I first signed up to RS, mainly so that I could get an idea of other investors' perception of the risks involved as measured by the average amount they were prepared to commit to the platform. Zopa stated a year or 2 back that they had 2 lenders of over a £1m but I agree, it would be interesting to know although the risk perception doesn't mean much unless you know it as a proportion of overall wealth. Someone with £10K invested from a net wealth of £10K probably sees it as very safe but someone with £1m out of £10m wealth could well still perceive it as more risky. Still its better than knowing: Average Age 50 Male/Female 69% / 31% Retired (%) 20%
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Post by deddington on Feb 26, 2015 19:10:05 GMT
One question I have in looking at the date of first payment, unless I am misunderstanding what it is saying, there are a number of loans which have a first payment date some way into the future. For example roughly £11m not due to start paying till 2016 and a total of roughly £44m not due to start paying May 2015 to Feb 2016. So if I am involved in one of those loans how does it work? Do I get my monthly repayments in the meantime from the Provision Fund or do I have to wait till the first repayment date? Sorry if I am misreading the data or it is already explained elsewhere. Sounds to me as if these are one year loans where no interest or capital repayments are made until maturity. Yes I think you are right. One year Bonds Capital and interest payable on maturity. However as I can't see that as an option on RS's Markets I presume the Monthly Capital and Interest repayments to lenders are coming from somewhere else. So I repeat my question where?
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spiral
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Post by spiral on Feb 26, 2015 19:44:40 GMT
Yes I think you are right. One year Bonds Capital and interest payable on maturity. However as I can't see that as an option on RS's Markets I presume the Monthly Capital and Interest repayments to lenders are coming from somewhere else. So I repeat my question where? Deddington, the 1yr market on RS only pays capital and interest on maturity. There is no option for monthly amortilisation.
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Post by deddington on Feb 26, 2015 20:00:41 GMT
Yes I think you are right. One year Bonds Capital and interest payable on maturity. However as I can't see that as an option on RS's Markets I presume the Monthly Capital and Interest repayments to lenders are coming from somewhere else. So I repeat my question where? Deddington, the 1yr market on RS only pays capital and interest on maturity. There is no option for monthly amortilisation. Thanks that answers my question. Should read the terms more closely.
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Post by westonkevRS on Feb 27, 2015 7:08:30 GMT
One question I have in looking at the date of first payment, unless I am misunderstanding what it is saying, there are a number of loans which have a first payment date some way into the future. For example roughly £11m not due to start paying till 2016 and a total of roughly £44m not due to start paying May 2015 to Feb 2016. Sounds to me as if these are one year loans where no interest or capital repayments are made until maturity. These loans are Commercial Lending where no payment is expected until this final date. They are sourced from the annual lender product. I'm loathe to use the word "bullet" or "bridging" as this is usually associated with property development. We do have some property development loans but by volume they are a small minority. The vast majority of these RateSetter delayed payment loans are with professional services firms and are secured. Additionally due to the funding use more often than not the loan is repayed early, well within 12-months. The dates on the spreadhseet are a maximum. This is not a new lending category to RateSetter and a lending format we are very comfortable with from a risk perspective. Althouhasthese loans have always been a minority of our overall lending which remains primarily Retail. I hope this provides some clarity, noting I am concerned about commerciality. If any lender (coffee B today?) ever makes it into the office and confirms their impartiality then I'll happily discuss more. Kevin.
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Post by deddington on Feb 27, 2015 11:31:36 GMT
Thanks. Back to looking at that database.
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Investor
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Post by Investor on Feb 27, 2015 12:49:45 GMT
Sounds to me as if these are one year loans where no interest or capital repayments are made until maturity. These loans are Commercial Lending where no payment is expected until this final date. They are sourced from the annual lender product. I'm loathe to use the word "bullet" or "bridging" as this is usually associated with property development. We do have some property development loans but by volume they are a small minority. The vast majority of these RateSetter delayed payment loans are with professional services firms and are secured. Additionally due to the funding use more often than not the loan is repayed early, well within 12-months. The dates on the spreadhseet are a maximum. This is not a new lending category to RateSetter and a lending format we are very comfortable with from a risk perspective. Althouhasthese loans have always been a minority of our overall lending which remains primarily Retail. I hope this provides some clarity, noting I am concerned about commerciality. If any lender (coffee B today?) ever makes it into the office and confirms their impartiality then I'll happily discuss more. Kevin. Any time Monday K, just can't squeeze you in this afternoon
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Post by ratesetterzombie on Feb 14, 2024 16:24:11 GMT
Nope, you the lenders DID NOT set the rates.
Ratesetter set the rates on a lot of their loans. They were selling loans for as much as 9.5% APR, but no, you, the retail investors did not have access to THOSE loans. Those were managed by a function of the Commercial Credit Department.
Did Ratesetter have first or second charge mortgages? They say they did not, if they had first charges mortgages, then that would have been illegal, they were not authorised for mortgage business, which is a specified activity. Therefore, engaging in first charge mortgages would have led to a couple of years in prison..
Yes they did do second charge mortgages, but these, they claim, are also not mortgages, although the contracts described them as "mortgages" - these bizarre "not mortgages" were secured in a lot of cases, via residential property in which the borrower was living. But, they were secured on only HALF of the equity in that property.
What checks did they do? Well... yes they did do some credit checks, but to my certain knowledge they were lending happily to people with CCJs on their CRA files, and to people whose credit scores were as low as 500.
It's a miracle for lenders that they got away unscathed.
The explosion, when it happens will be inside Metrobank now.
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adrianc
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Post by adrianc on Feb 14, 2024 16:39:38 GMT
Only nine years after the last post in this thread... and three years after we all got repaid in full. I wonder how many of the originally-P2P loans are still ongoing?
You really are living up to that username.
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Post by Badly Drawn Stickman on Feb 14, 2024 17:24:43 GMT
Only nine years after the last post in this thread... and three years after we all got repaid in full. I wonder how many of the originally-P2P loans are still ongoing? You really are living up to that username. I think you have started on book two of a trilogy, Book 1The third I hope will give it meaning.........
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