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Post by p2plender on Jun 27, 2015 13:50:56 GMT
I thought RS liked things left to market forces btw. Granted there may be a pipeline but they can always go elsewhere if they are desperate....
Personally I'll go with some of the asset backed prop loans on offer at FC for the next 2/3 weeks until rates return to normal. Not what I want to do but neither do I want to participate in cheap one off lending. Oh and FC do double the RS cashback though cashback is not what I initially invest for.
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Post by reeknralf on Jun 27, 2015 16:44:17 GMT
Just trying to understand what might happen ... Your on the right track. The thing to bear in mind with the cash back is that over a 5yr term it equates to just over 0.2% uplift in your return (just over because you get it upfront and can re-invest it). Like for like figures for 3 & 1yr are 0.34% and 1%. So if you can get 6.7% now in 5yr, it works out better than 6.4% with 1% cashback... I get very different equivalences. How did you calculate them? £100 invested for 5 years at 6.7% yields monthly repayments of £1.97 (xirr 6.9%) £101 invested for 5 years at 6.28% yields monthly repayments of £1.97 (xirr 6.9%) £100 invested for 1 year at 4.0% yields monthly repayments of £8.51 (xirr 4.1%) £101 invested for 1 year at 2.1% yields monthly repayments of £8.51 (xirr 4.1%)
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Post by bobthebuilder on Jun 28, 2015 3:42:49 GMT
Have I misunderstood something here? The e-mail I received states (condition 4):
"Maximum cumulative cashback per customer is £100" (my Bold)
I interpreted that to mean that anyone who received £100 cashback from participating in the last offer , as I did, wouldn't qualify for cashback this time round. The offer is therefore designed to appeal only to recent RS investors who missed out on the previous offer. True?
One other thing: I don't like to quibble, but the opening words of the e-mail referred to "Unprecedented demand for borrowing". That's not borne out by Ratesetter's weekly volume figures, which show lending of 8,138,721 for the week to 26/6/15. A weekly volume of more than £11m was achieved in January this year, so not exactly "unprecedented". Or is the argument that demand is unprecedented, but borrowers in many cases don't complete the deal because pesky lenders insist on asking for such high rates that another cashback offer is required to bring them down?
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bigfoot12
Member of DD Central
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Post by bigfoot12 on Jun 28, 2015 8:10:56 GMT
Your on the right track. The thing to bear in mind with the cash back is that over a 5yr term it equates to just over 0.2% uplift in your return (just over because you get it upfront and can re-invest it). Like for like figures for 3 & 1yr are 0.34% and 1%. So if you can get 6.7% now in 5yr, it works out better than 6.4% with 1% cashback... I get very different equivalences. How did you calculate them? £100 invested for 5 years at 6.7% yields monthly repayments of £1.97 (xirr 6.9%) £101 invested for 5 years at 6.28% yields monthly repayments of £1.97 (xirr 6.9%) £100 invested for 1 year at 4.0% yields monthly repayments of £8.51 (xirr 4.1%) £101 invested for 1 year at 2.1% yields monthly repayments of £8.51 (xirr 4.1%) I think that you are correct on the 5 year. My guess without calculating would be that 1% cashback was worth about 0.4% per year on an amortising loan. (I think that pepperpot didn't take account of amortising bit.) I don't think that you are correct on 1 year as it isn't a monthly loan. It pays back at the end of the year; there are no monthly repayments. My guess is that the cashback is worth close to 1% of the annual interest.
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teddy
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Post by teddy on Jun 28, 2015 13:53:30 GMT
Rates seem to be getting artificially forced lower. They're now terrible. A week ago, I got 3.4% on the monthly. It's now 2.7%.
Now reason for going in the 5 year at 6.1% when 3 year is 5.7%.
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Steerpike
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Post by Steerpike on Jun 28, 2015 17:47:40 GMT
Rates seem to be getting artificially forced lower. They're now terrible. A week ago, I got 3.4% on the monthly. It's now 2.7%. Now reason for going in the 5 year at 6.1% when 3 year is 5.7%. We can of course shop around. Taking a quick review of Zopa, RS, LendingWorks, Wellesley, and Landbay. W & LB are offering 3.5 for "instant access". RS currently has the best rates for 1 and 3 year. LendingWorks has 6.4% for 5 year.
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elgerod
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Post by elgerod on Jun 29, 2015 17:00:40 GMT
Have I misunderstood something here? The e-mail I received states (condition 4): "Maximum cumulative cashback per customer is £100" (my Bold) I interpreted that to mean that anyone who received £100 cashback from participating in the last offer , as I did, wouldn't qualify for cashback this time round. The offer is therefore designed to appeal only to recent RS investors who missed out on the previous offer. True? Bob, I took the maximum cumulative to mean the maximum within this cash-back offer alone, i.e. the maximum is on a new total investment of £10k, so you cannot invest a total of £15k and expect to receive £150 cash-back.
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Post by closetotheedge on Jul 1, 2015 9:16:32 GMT
I have just realised that I have made a hash of the cash back offer. I looked at my email for the first time in a couple of days this morning and seeing the RS cash back offer wedged in another £10K. Only problem is my wife and I are visiting family in Auckland so my morning was still the UK evening on the 30th.
Do any of the more experienced regulars know of a friendly RS person who might look kindly on me.
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teddy
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Post by teddy on Jul 1, 2015 9:27:05 GMT
Have your funds been matched? At current rates, I hope not for your sake!
Right now, there's some plank lending £10k at 5.8% on the 5 year. Last night, the 5 year was doing 6.4%. Someone's manipulating the system. Borrowers and lenders at 5.8% over 5 years is a joke. I've stuck my repayments from the last two days on at 6.4% and I'll see what happens. If they don't go, I'll go in to draw down mode for the month. This stupid cashback offer is killing everything.
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pom
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Post by pom on Jul 1, 2015 9:36:23 GMT
Have your funds been matched? At current rates, I hope not for your sake! Right now, there's some plank lending £10k at 5.8% on the 5 year. Last night, the 5 year was doing 6.4%. Someone's manipulating the system. Borrowers and lenders at 5.8% over 5 years is a joke. I've stuck my repayments from the last two days on at 6.4% and I'll see what happens. If they don't go, I'll go in to draw down mode for the month. This stupid cashback offer is killing everything. First thing this morning I spotted some at 3% and various percentages above, so there's clearly still a number of people who still haven't realised the "your rate" rules have changed. Tho anyone who EVER set their rate to 3% is clearly an idiot.
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teddy
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Post by teddy on Jul 1, 2015 9:47:52 GMT
I had a very early full repayment of £1.5k yesterday, so I thought I'd do the cashback offer for £25 as I can scrape together another £500 plus 2 weeks of repayments. Stupid decision as I could've lumped it all on at 6.4 yesterday.
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Post by fiatlender on Jul 1, 2015 12:44:47 GMT
Teddy
I think you have to deposit additional money to qualify for the cashback, not use money already in your Ratesetter account.
From the RS promo email: "Deposit an additional £2,500, £5,000 or £10,000 into your account"
And point 3 of the terms: "In order to be eligible for cashback, the additional funds must be committed to a lending term of 1 year or longer."
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am
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Post by am on Jul 1, 2015 13:11:50 GMT
I didn't think that that "lending rates (had been driven) to very high levels" - I'd seen higher rates than those current at the time of the announcement in the recentish past. However the 3 year market seemed quite thin, so I tried putting in bids at a variety of rates between 6.2% and 10% (if the lower rates were all matched rates would have risen quickly in the thin market). It didn't work (the volume in the 3 year market presumably is lower than the other markets), so I now get a chance to test the withdrawal process.
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Post by p2plender on Jul 1, 2015 13:30:29 GMT
draw the money out into bank and then deposit it back into RS for cashback.
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teddy
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Post by teddy on Jul 1, 2015 14:45:51 GMT
draw the money out into bank and then deposit it back into RS for cashback. A quite ridiculous palava when it's obviously the same money you had back in repayments the day before. This from the terms and conditions on the cashback email: Contracts repaid during the promotional period will still be valid for the promotion.
Now, do I have to withdraw this repaid money and then deposit it again? Does "repaid" mean repaid in full, or the usual monthly repayment? The language of the email is all over the shop. Cashback offer:
Invest an additional £2,500 and earn £25 cashback Invest an additional £5,000 and earn £50 cashback Invest an additional £10,000 and earn £100 cashback
And then on the right in the purple box it says Deposit an additional £2,500, £5,000 or £10,000 into your account which is quite different from investing that money if you already have it in your holding account to do with as you please. So which is it?
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