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Post by dagoatla on Nov 3, 2015 6:11:42 GMT
I have been a lurker here for a few weeks and signed up today. I joined ratesetter a few weeks ago and have a few thousand in it. However I have noticed over the past few days that there seems to be massive amounts of money sitting to be matched.
Was there that much of an inflow from the promotion, or is there a shortage of borrowers?
Maybe it is just me but it is hard to accept 5.9% for a 5 year when I was getting 6.4% or 6.5% readily last week. Now I see this morning there is £460k sitting on the 5 year market at 5.9% that was 6% last night.
If it drops much more with these volumes essentially blocking the higher rates will it be worth investing on ratesetter?
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bigfoot12
Member of DD Central
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Post by bigfoot12 on Nov 3, 2015 7:35:56 GMT
A lot of consumer borrowers choose repayment dates of the very end of the month or the first day or two of the next month, as they are paid at the end of the month. Ratesetter normally as more money 'hanging around' at this time. There may be extra this time because of the promotion. We will have a better idea by the middle of the month.
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pikestaff
Member of DD Central
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Post by pikestaff on Nov 3, 2015 8:49:35 GMT
Although it has persisted for a few months, rates of over 6% are anomalous. Enjoy while you can. RS's real problem is they are short of lenders, which is why they keep advertising for new ones and offering cashback promotions to bring them in. They have massive unmet demand from borrowers at lower rates, and they would be much happier with 5 year rates around 5% - which is what they were when I joined, and what they will be (at best) when ISA money comes on stream. Higher rates attract a lower class of borrower, which requires a higher provision fund contribution from the borrower, which makes the rate to them even higher, and so on... a vicious circle. This means default rates are higher too, and possibly less predictable - making the provision fund harder to manage, and making it harder for westonkevRS to sleep at night! |
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Post by settersam on Nov 3, 2015 10:44:20 GMT
That was very informative - maybe not exactly what I wanted to hear but appreciated - thanks.
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ribs
Probably not James Marshall
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Post by ribs on Nov 3, 2015 10:51:37 GMT
Although it has persisted for a few months, rates of over 6% are anomalous. I've been using ratesetter for nearly two years now, contributing money and lending most months. My portfolio sits at 6.2% in the 5 year market. I've not once got a rate below 6% in that time. Although it would seem ratesetter's graphs agree with you: members.ratesetter.com/ratesetter_info/rate_trends.aspxMaybe I got lucky. Sometimes it has taken a couple of weeks to match though. Either way, I won't lend at less than 6%, given I can get 5% on the high street with less risk. I have been quietly concerned with the rate trend of late, a few times I've noticed 3 year rates getting very close to the 5 year rates. Maybe things will pick up, but for now I guess I'll just put up with having some unmatched money. I imagine 6.something% is the 'sweet spot' for many.
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Investboy
Member of DD Central
Trying to recover from P2P revolution
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Post by Investboy on Nov 12, 2015 15:46:05 GMT
Definitely lenders market on 3 year loans now. There is a 1.2 pp gap between ask and bid.
Borrowers Rate Lenders
5.8% £190.9k
5.7% £9.3k
5.5% £500.00
£4,573.80 4.3%
£9.3k 4.0%
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caesium
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Post by caesium on Nov 12, 2015 16:33:05 GMT
Yep. Matched 5.9% in 3yr earlier after only a few days of waiting. Pretty happy with that.
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oldgrumpy
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Post by oldgrumpy on Nov 12, 2015 17:56:06 GMT
Yep. Matched 5.9% in 3yr earlier after only a few days of waiting. Pretty happy with that. I might try for a bit if RS get off their backsides and process the faster payment I sent nearly four hours ago. Today Floyd's Bonk "credit-safe" decided not to let me pay by the uusal debit card, and decided not to contact me within five minutes to confirm my request, by which time the 0845 number which would cost me money had gone from my screen. There was five times more in my account than I asked to pay to RS having done a similar payment several times before! My complaint has been lodged! edit: Ah! They've done it now. And Floyds Tank has just made an automated call to check my attempt to use the card was genuine ... nearly five hours later!! 19:00 12 Nov. edit: next morning >>>>>>>>>> matched at 5.9%, (very nice, thank you). Should've been more greedy ambitious, most of the 6.0% has been cleaned out by mid morning!
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Investboy
Member of DD Central
Trying to recover from P2P revolution
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Post by Investboy on Nov 13, 2015 9:56:00 GMT
We may break 6.0% on 3yr today:
Borrowers Rate Lenders
6.0% £212.2k
5.9% £29.6k
5.8% £23,985.02
£227,411.58 5.7%
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Nov 13, 2015 18:08:19 GMT
Well, much of the cash on 6.0% was matched earlier today in 3yr, then the rates dropped off though not much money was around. However, I notice about another £400K has been dropped into the 6.0% pot during the afternoon, speculating that this will be lent out over the weekend.
Interesting; I'm happy enough with my 5.9% this (Friday) morning.
edit....Weird goings on. Most of that £400K had disappeared by this Saturday morning ... but now at 15:12 GMT there's over 600K parked in 6.0%.
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Post by GSV3MIaC on Nov 13, 2015 19:38:04 GMT
I got 6%, but that was the high water mark... 6.1% didn't fly.
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Post by settersam on Nov 14, 2015 8:18:58 GMT
Darn, I only managed the 5.9 - that's £1 I've missed out on!
(£1000 amortised over 3 years @5.9% = £94 interest, £95 @6%)
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Post by westonkevRS on Nov 14, 2015 8:38:38 GMT
Well, much of the cash on 6.0% was matched earlier today in 3yr, then the rates dropped off though not much money was around. However, I notice about another £400K has been dropped into the 6.0% pot during the afternoon, speculating that this will be lent out over the weekend. Interesting; I'm happy enough with my 5.9% this morning. Don't worry oldgrumpy , day 21 is nearly here. I always keep my powder dry until the optimal time to pile in.... No promises of course. @ westonkevRS
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Nov 14, 2015 15:16:11 GMT
Well, much of the cash on 6.0% was matched earlier today in 3yr, then the rates dropped off though not much money was around. However, I notice about another £400K has been dropped into the 6.0% pot during the afternoon, speculating that this will be lent out over the weekend. Interesting; I'm happy enough with my 5.9% this morning. Don't worry oldgrumpy , day 21 is nearly here. I always keep my powder dry until the optimal time to pile in.... No promises of course. @ westonkevRSI'm just making my powder ready for next Saturday, though I suspect the optimum will be on 19/20 this month, rather than the Saturday. 
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Post by westonkevRS on Nov 15, 2015 7:14:27 GMT
Right oldgrumpy , the bet is on.... We won't rely on MR, I'll scan the database of contracts for the highest rate achieved in the 5-yr market.... |
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