Investor
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Post by Investor on Sept 29, 2015 14:02:36 GMT
Surely for simplicity, if not honesty, if we lenders set our own 'Your Rate' then Ratesetter should just change the name of 'Market Rate' to 'Our Rate'.
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bigfoot12
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Post by bigfoot12 on Oct 3, 2015 10:23:58 GMT
Yep, 6.7% on 5-year money makes us uncompetitive in the prime lending markets (say with comparison web sites or loan brokers). So we find it hard to find a prime borrower who could get a better deal elsewhere. Hence we cannot match loans unless lenders lower the rates. That's the markets in action... Are you able to give us any data to back that up? (I'm sure you have it, but I understand that you might not be able to publish it.) Something like X% of borrowers offered (the equivalent lender rate of) 6.5 go on to accept, whereas Y% of borrowers offered (telro) 7% go on to accept. Or is it that traffic falls when the rate increases as there is less traffic from comparison websites? If you can I am minded to lower some of my offers.
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Post by p2plender on Oct 3, 2015 10:37:45 GMT
Sorry, that isn't what I meant. We don't blend across terms, i.e. we don't blend shorter term money with 5- year money. I meant if a savvy lender is only willing to lend at 7%, and we need 6% blended to be competitive to find a borrower, then if a "lend it now" type lender gives at 5% the RateSetter can match a loan. Everyone is happy, especially the savvy lender. The APR is fixed with the money on the market at that time. Any short term movement is a gain or loss to RateSetter, but this is minimal as most borrowers complete within 24 hours. westonkevRSWhat is a decent rate for say £10000 for 5 years? Curious as I've recently tried for credit cards and loans and have then been offered rates way way above what these lovely banks have tried to entice me in with. I presume my credit report is decent and I'm not too poor. For instance Halifax insist on offering me a 3.9% loan most times I log in to online banking yet I got offered ridiculous terms once I filled in requested details. Similar with credit cards, offered a measly £1200 limit on a card from my bank.
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Post by westonkevRS on Oct 3, 2015 11:05:34 GMT
What is a decent rate for say £10000 for 5 years? Curious as I've recently tried for credit cards and loans and have then been offered rates way way above what these lovely banks have tried to entice me in with. I presume my credit report is decent and I'm not too poor. For instance Halifax insist on offering me a 3.9% loan most times I log in to online banking yet I got offered ridiculous terms once I filled in requested details. Similar with credit cards, offered a measly £1200 limit on a card from my bank. The "best buy" tables are offering sub 4% APR at the moment for their representative APRs on 5 years. But the whole "representative" thing is gamed by the banks, with lots of * caveats allowing them to advertise low rates without giving it to 51% of loans completed. Another regulation with unintended consequences resukting in negative customer outcomes. So it looks like you haven't qualified, and without seeing your credit report it is hard for me to say. That said if you make a RateSetter application then me and you could have a discreet informal chat..... westonkevRS
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james
Posts: 2,205
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Post by james on Oct 5, 2015 21:13:32 GMT
What is a decent rate for say £10000 for 5 years? Curious as I've recently tried for credit cards and loans and have then been offered rates way way above what these lovely banks have tried to entice me in with. I presume my credit report is decent and I'm not too poor. For instance Halifax insist on offering me a 3.9% loan most times I log in to online banking yet I got offered ridiculous terms once I filled in requested details. Similar with credit cards, offered a measly £1200 limit on a card from my bank. The credit card and personal loan markets are a bit different but here's a bit more on how banks manage it beyond what westonkev wrote: 1. The all or nothing types. They will either refuse you completely or offer you the quoted rate on a loan and term on a credit card deal. If it's a credit card they may accept you for a much lower limit and see how you manage the account, since there they don't have to offer the full loan amount or expect you to walk away. They won't offer you £4,000 on a £5,000 personal loan request or less than x months or more than y then z on an x months at y then z special rate card deal. But they might offer you a £500 or £100 credit limit. 2. The price for risk types. They will offer the loan at the rate they think you will bear or not at all. On a card they will vary x, y and z to get you to a combination that they think you will accept. Halifax seems to be fairly tough at setting initial credit limits on cards, recently got much less than I requested and for lower term but of course I don't look gift horses in the mouth and used what was offered: no cash cost money for many months. My existing card providers have routinely been telling me that they are increasing my credit limit, something I'm generally happy to accept, notably from those that offer good existing customer balance transfer deals. If you apply for a credit card 0% for balance transfers or purchases deal accept whatever rate they give you. You've already spent the search to get the card offer. If it's a quotation search you can choose not to proceed without adverse effect. Then either apply somewhere else or wait three months before trying again to try to get what you want. Use a comparison site that checks your credit record before applying. You get indicative acceptance rates from them that seem tolerably reliable and far better than blind applications. But not all cards will provide feedback, so do look at the "no response available" ones if they have decent offers and compare their terms to your projected acceptance for others with similar terms. Sometimes accept/decline can be more about a lender hitting targets or limits than about you individually. You also see this a lot in P2P with lenders trying to keep their money invested when letting it wait for a while might be more profitable.
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duck
Member of DD Central
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Post by duck on Oct 7, 2015 9:46:26 GMT
I'm 'pleasantly bemused' by the whole high street banking system.
In the past year my current account has been upgraded twice simply because I now circulate a decent 5 figure sum through it each month. The 'cash' when it arrives is instantly moved elsewhere (often between platforms) so whilst there might be a bit of cash left overnight (unusual) it never stays there longer. So not much scope for the bank to 'use' my cash.
With each account upgrade I have received extra 'benefits' and I am continually offered loans at lower rates!
When I have had face to face meetings (business account) I have been asked what they could do for me ...... "decent interest if I let you hold onto some of my/my business cash" ...... blank faces all round!
In the meantime my Credit Card (issued by the same bank) has had its limit dropped because I don't use it enough and my credit risk is viewed as increasing since I don't have any loans/credit!
Recently I've been hearing further mutterings about improving visibility of Bank charges .... which 'they' say would 'by default' mean charging per transaction ..... that would be a game changer!
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james
Posts: 2,205
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Post by james on Oct 7, 2015 10:06:55 GMT
I'm 'pleasantly bemused' by the whole high street banking system. I'm quite pleasantly bemused by a credit card system that lends me enough money to make around £8,000 a year in P2P interest. The money isn't quite free but I doubt it costs more than £1,200 or so a year. Then there's the bank that has provided me with a convenient overdraft facility on which I think I can make perhaps £75 a month tax free with occasional use throughout the month.
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Post by p2plender on Oct 7, 2015 12:06:12 GMT
well RS won't lend me any money :-((
and this really bugs me.
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Post by moneyball on Oct 7, 2015 12:39:06 GMT
What is a decent rate for say £10000 for 5 years? Curious as I've recently tried for credit cards and loans and have then been offered rates way way above what these lovely banks have tried to entice me in with. I presume my credit report is decent and I'm not too poor. For instance Halifax insist on offering me a 3.9% loan most times I log in to online banking yet I got offered ridiculous terms once I filled in requested details. Similar with credit cards, offered a measly £1200 limit on a card from my bank. The "best buy" tables are offering sub 4% APR at the moment for their representative APRs on 5 years. But the whole "representative" thing is gamed by the banks, with lots of * caveats allowing them to advertise low rates without giving it to 51% of loans completed. Another regulation with unintended consequences resukting in negative customer outcomes. So it looks like you haven't qualified, and without seeing your credit report it is hard for me to say. That said if you make a RateSetter application then me and you could have a discreet informal chat..... westonkevRS
In the past few months, I have made quite a few applications for credit, all but one got accepted.
Credit limits have varied from £500 to £10,000... my circumstances haven't changed anywhere near to that extent during that time. Some firms have accepted my request to increase limits (one of whom, has done it more then once) some have refused. One firm has reduced a limit with no input from me, three others have increased it without any input from me. Some of these relative discrepancies have even been between two firms that have the same parent company.
I know this isnt a perfect example/experiment as my situation was obviously not 100% identical in each case but I cant help but think that an individuals credit report has only a 20-30% bearing on the terms offered.
Was it with you underwriters? 
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Post by westonkevRS on Oct 7, 2015 19:51:57 GMT
well RS won't lend me any money :-(( and this really bugs me. Are you sure? DM me your email address used for the application and I'll work out why and give you a call....
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Post by Deleted on Oct 8, 2015 7:38:30 GMT
Having not had a mortgage for 30 years and never made any other borrowing apart from tiny amounts on a credit card I'm told my credit worthiness is now very small. I recently tried to buy a car, having no income (I earn my money on the stock exchange and P2P) the bank felt that letting me spend my money at a rate of more than £10,000 a day was too much for them so I had to buy the car over multiple days much to the bemusement of the car dealer who knows where I live and that I might be up to buying his business off him. And they say the old time musical is dead.  |
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Post by p2plender on Oct 9, 2015 6:13:37 GMT
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arbster
Member of DD Central
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Post by arbster on Oct 9, 2015 6:41:28 GMT
Surely there are forum rules about linking to the Daily Mail...?
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Post by westonkevRS on Oct 9, 2015 12:55:38 GMT
Yep, 6.7% on 5-year money makes us uncompetitive in the prime lending markets (say with comparison web sites or loan brokers). So we find it hard to find a prime borrower who could get a better deal elsewhere. Hence we cannot match loans unless lenders lower the rates. That's the markets in action... Are you able to give us any data to back that up? We don't have the data because we don't have the application. If we are not near the top of the tables, people don't see RateSetter and don't click on our loan offer. The only ones that do are higher risk customers that we don't really want and have probably already been declined by the lenders higher up the tables. Data I do have is that higher APR customers are more likely to default. This will be because they are higher risk (hence the higher APR) but also the higher APR in itself causes negative actions. Customers on a very low rate know they are on a good rate and tend to pay. I can't provid here the data on the last fact, as I don't want to disclose details on our range of APRs. Kevin.
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bigfoot12
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Post by bigfoot12 on Oct 9, 2015 13:34:36 GMT
Are you able to give us any data to back that up? We don't have the data because we don't have the application. If we are not near the top of the tables, people don't see RateSetter and don't click on our loan offer. The only ones that do are higher risk customers that we don't really want and have probably already been declined by the lenders higher up the tables. Data I do have is that higher APR customers are more likely to default. This will be because they are higher risk (hence the higher APR) but also the higher APR in itself causes negative actions. Customers on a very low rate know they are on a good rate and tend to pay. I can't provide here the data on the last fact, as I don't want to disclose details on our range of APRs. Kevin. So higher rates give a lower footfall rather than a lower conversion. Do you pay more into the provision fund when the rate is higher?
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