jlend
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Post by jlend on Nov 1, 2015 19:28:59 GMT
I think we may all have to prepare for even more volatility when p2p isa accounts are launched next year.
I assume ratesetter will use that opportunity to attract new lenders and encourage existing lenders to invest additional funds. Let's hope this is matched with an increase in loans at the same time ☺
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iren
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Post by iren on Nov 1, 2015 19:33:58 GMT
Not good. It's a key part of the value that the monthly market has for me that I can relend quickly on receipt of repayments, at a rate that reflects the risk. If I can't do that, I'm likely to exit the market in full, rather than continually move funds on and off the platform. My 3 and 5 year money will then start to follow my monthly money out of the door.
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Post by settersam on Nov 1, 2015 19:45:58 GMT
When I looked on Wednesday there were 27977 lenders. Currently there are 28516.
if we assume 500 extra new investors because of the referral, that's only an additional £250k which has resulted in the monthly lender's queue increasing to £2.2M.
I share jlends concerns over the impact of ISA cash - £250k is only about 15 full ISA allowances!
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Post by westonkevRS on Nov 1, 2015 20:00:10 GMT
if we assume 500 extra new investors because of the referral, that's only an additional £250k which has resulted in the monthly lender's queue increasing to £2.2M. Not necessarily so. Although there are plenty of £500 joiners, my new friendly member put in £7,000 (into the 5-yr). If the average was £2k then that would be an extra £1m across 500 new lenders. @ westonkevRS
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Steerpike
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Post by Steerpike on Nov 1, 2015 21:26:10 GMT
Not good. It's a key part of the value that the monthly market has for me that I can relend quickly on receipt of repayments, at a rate that reflects the risk. If I can't do that, I'm likely to exit the market in full, rather than continually move funds on and off the platform. My 3 and 5 year money will then start to follow my monthly money out of the door. Yep, I have just switched from invest repayments in monthly at market rate to weekly withdrawal of account balance. Considering Landbay for more of my monthly money now.
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Post by bobthebuilder on Nov 2, 2015 2:42:24 GMT
I wouldn't want to be working in RS's Customer Services department this morning. I was monitoring the overnight repayment run in the monthly access market and noticed that more than £6.79m was reinvested by passive lenders at a market rate of just 1.3%. Sure, it's cheap finance for RS during the next month, but that represents a heck of a lot of really unhappy lenders who are likely to head for the exit at the first opportunity.
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Post by megadriveguy on Nov 2, 2015 2:55:33 GMT
Thought that was a bug, but no there still appears to be 5 million going out at 1.3%, good job I don't use automatic lending option
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Post by Deleted on Nov 2, 2015 6:22:21 GMT
Crashed monthly market and p!ssed off existing customers. Hope the new money was worth it RateSetter.
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Post by settersam on Nov 2, 2015 7:02:41 GMT
It was obvious from yesterday's trades that today's market rate would crash (now 1.3%). Was no one from RS monitoring the situation or just the forum members?
Where could the £4.25m borrowers money (3000 orders) at 1.3% have come from overnight?
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jlend
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Post by jlend on Nov 2, 2015 7:29:23 GMT
Is the 4.25m mostly rolled over loans that were already on the market before today ?
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ikorodu
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Post by ikorodu on Nov 2, 2015 8:31:17 GMT
Now seeing some of my monthly loans repaid, I assume so that the borrower can take advantage of the low monthly rates.
Just looks a mess at RS right now.
Not the boring platform they are looking for.
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Post by Deleted on Nov 2, 2015 10:11:12 GMT
Every time RS does a "special deal", cash back, intros etc etc it adds a distortion to the market (if Ian Banks was still alive he would be talking about "Minds grabing the sub surface skein" or summit) and this has significant affects on time and gravity (earning rate), just wait a couple of weeks then keep lending at the weekend and the rates will be back to normal. Just why RS feels the need to do this is beyond me and certainly it makes regular lending into a game, maybe when they grow up gain experience they will stop.
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ton27
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Post by ton27 on Nov 2, 2015 10:25:38 GMT
I am another lender who does not like the volatility currently displayed by RS. I tend to use the monthly market to hold cash and then invest when 3 and 5 year rates match my criteria. If such low rates persist, I will likely start to withdraw funds and move elsewhere (AC with 3.75% in the QAA?) rather than leave them with RS.
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oldgrumpy
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Post by oldgrumpy on Nov 2, 2015 10:28:48 GMT
How many people have fed back to Ratesetter how unhappy they are with these market dives as a result of the promotions? I emailed my feedback last time but never received a reply. I am sure Ratesetter read threads here too, I am not sure if there is a representative who can comment? (just joined the forum today, been reading it for a couple of years!) Welcome to the forum shirehorse ! There is one. He's probably not had his fifth mug of coffee yet, but he'll post here soon
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ikorodu
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Post by ikorodu on Nov 2, 2015 10:32:18 GMT
So what happens now, to the £4,200,000 sat at 1.3%?
Surely it will never be matched?
Will it be withdrawn and resubmitted at a more realistic level?
So many questions!
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