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Post by yorkman on Apr 14, 2016 7:42:27 GMT
Did I blink and miss the announcement? I've just noticed that 'Monthly' has become 'Rolling'.
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ferdy
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Post by ferdy on Apr 14, 2016 7:47:06 GMT
Did I blink and miss the announcement? I've just noticed that 'Monthly' has become 'Rolling'. Yes I saw that too. Not sure how it works though. Is there any guidance in Help?
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alender
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Post by alender on Apr 14, 2016 8:05:33 GMT
Looks like the latest Website update changed Monthly to Rolling. When this came up in Markets Rate Thread I posted.
I am confused, RS still have the Monthly when I logon but the website states Rolling market. The term are
You can access your money freely as long as there are funds in the market to replace the amount being withdrawn. This could come from money already rolling in the market, new investors or funds set aside by RateSetter to cover peaks in demand. If replacement funds aren’t available, your money will be returned as and when your borrower(s) repay, along the loan terms of 6 months to 5 years. To date no customer has ever had to wait for their money although it's not a guarantee.
This market is now being used for loans of up to 5 years, before I believe it was 2 years, can we expect longer term rates to fall.
What is meant by replacements funds, are theses funds at or below you lending rate, if so be very careful what rate you lend at, if it is low (today’s rate in 2%ish) you could be stuck at this rate for up to 5 years with no access to your money until then. If replacements funds means any funds I guess you would take a hit to compensate the new lender for the increase in rate, if so what would this be, would it depend not only the rate differential but the length of the underlying loans.
What happens if you pick up the end of a loan, say one week, does automatically it go back on the market in one week at your chosen rate, my monthly reinvestment setting say to put in holding account, how does this all work.
Thought I would repeat it here as it seems appropriate.
As yet I had not had any information on this product.
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ferdy
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Post by ferdy on Apr 14, 2016 8:06:37 GMT
Did I blink and miss the announcement? I've just noticed that 'Monthly' has become 'Rolling'. Yes I saw that too. Not sure how it works though. Is there any guidance in Help? Found the guidance. I see there are no fees for early withdrawal but what about the interest. Does it accrue up to date of the early withdrawal?
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oik
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Post by oik on Apr 14, 2016 10:52:33 GMT
Did I blink and miss the announcement? I've just noticed that 'Monthly' has become 'Rolling'. If so, I blinked at the same time as you. Just looked after reading this and without my knowledge or consent my Reinvestment setting has been changed from "Monthly" to "Rolling". If my money is lent out on any terms other than as I agreed then I'll be wanting it back pronto or a formal complaint will follow. It's not the way to run a business and gives me little confidence in their judgement or systems.
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oldgrumpy
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Post by oldgrumpy on Apr 14, 2016 11:04:29 GMT
"How it works: Your money is lent for one month. At the end of the month, you can roll your contract over or you can withdraw your funds. Borrowers are re-matched in the market with new Lenders each month and enjoy a low-rate loan.
There are no early withdrawal fees for one month term investments.
If a borrower repays your loan early you will receive all of the outstanding capital and any interest earned up to that point. Funds will be reinvested as per your settings.
Best for: Rolling is similar to a variable rate, easy access product. It's ideal if you want easy, regular access to your funds, or if you're trying lending for the first time."
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ferdy
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Post by ferdy on Apr 14, 2016 11:05:58 GMT
Did I blink and miss the announcement? I've just noticed that 'Monthly' has become 'Rolling'. If so, I blinked at the same time as you. Just looked after reading this and without my knowledge or consent my Reinvestment setting has been changed from "Monthly" to "Rolling". If my money is lent out on any terms other than as I agreed then I'll be wanting it back pronto or a formal complaint will follow. It's not the way to run a business and gives me little confidence in their judgement or systems. If it helps, under Lend Money it states:- How it works:
Your money is lent for one month. At the end of the month, you can roll your contract over or you can withdraw your funds. Borrowers are re-matched in the market with new Lenders each month and enjoy a low-rate loan.
There are no early withdrawal fees for one month term investments.
If a borrower repays your loan early you will receive all of the outstanding capital and any interest earned up to that point. Funds will be reinvested as per your settings.
Best for:
Rolling is similar to a variable rate, easy access product. It's ideal if you want easy, regular access to your funds, or if you're trying lending for the first time.
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Post by magoo68 on Apr 14, 2016 11:13:19 GMT
Surely it's just a rationalisation of the naming, the Monthly was never a month loan as such, you just lent and got repaid monthly. Seems reasonable to me at least.
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am
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Post by am on Apr 14, 2016 11:22:02 GMT
If so, I blinked at the same time as you. Just looked after reading this and without my knowledge or consent my Reinvestment setting has been changed from "Monthly" to "Rolling". If my money is lent out on any terms other than as I agreed then I'll be wanting it back pronto or a formal complaint will follow. It's not the way to run a business and gives me little confidence in their judgement or systems. If it helps, under Lend Money it states:- How it works:
Your money is lent for one month. At the end of the month, you can roll your contract over or you can withdraw your funds. Borrowers are re-matched in the market with new Lenders each month and enjoy a low-rate loan.
There are no early withdrawal fees for one month term investments.
If a borrower repays your loan early you will receive all of the outstanding capital and any interest earned up to that point. Funds will be reinvested as per your settings.
Best for:
Rolling is similar to a variable rate, easy access product. It's ideal if you want easy, regular access to your funds, or if you're trying lending for the first time.The words "you can roll your contract over" made me think that I could lock in (until the borrower repaid) the contracts paying over 4%. But looking at the web site I don't see any mechanism for doing so, so my working hypothesis is that nothing has changed except for the name. Does westonkevRS know diferently?
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ilmoro
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Post by ilmoro on Apr 14, 2016 11:22:46 GMT
Pretty sure when I started on RS (2010) it was called the Rolling market so its just gone back to its original name.
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oik
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Post by oik on Apr 14, 2016 11:40:17 GMT
"How it works: Your money is lent for one month. Does that mean your money is lent for one month? That would be something of a novelty if so. It doesn't happen that often at the moment.
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alender
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Post by alender on Apr 14, 2016 12:32:00 GMT
"How it works: Your money is lent for one month. Does that mean your money is lent for one month? That would be something of a novelty if so. It doesn't happen that often at the moment. Unfortunately not, according to the Website it is used to fund 6 months to 5 years which seems to be a change from the previous up to 24 months. Looks like RS will be using the Rolling funds to fund some of the loans which would otherwise be in the 1, 3 and 5 year market. If this is the case the risk has increased for a liquidity crunch the sort that happened to companies like Northern Rock in 2008.
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alender
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Post by alender on Apr 14, 2016 12:43:02 GMT
"How it works: Your money is lent for one month. At the end of the month, you can roll your contract over or you can withdraw your funds. Borrowers are re-matched in the market with new Lenders each month and enjoy a low-rate loan. I am not sure what is meant by rolled over, does it mean you keep the same rate with no loss of interest waiting for a match or does it mean it will be placed on the market. If it is placed on the market I cannot see the difference between Monthly and Rolling as you can use investment setting to achieve this, if this is the case it is not a Rolling market/contract except in the name.
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Investor
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Post by Investor on Apr 14, 2016 16:55:50 GMT
And if you check your summary page, under 'your balance sheet' there are an additional two lines
Account transfers from other RS Accounts £0.00
Account transfers to other RS Accounts £0.00
All ready for the ISA launch then!
Also many of the buttons you click seem to have had some additional shading put on them.
Sure we will spot more 'developments' in time
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Post by westonkevRS on Apr 14, 2016 17:04:09 GMT
"How it works: Your money is lent for one month. At the end of the month, you can roll your contract over or you can withdraw your funds. Borrowers are re-matched in the market with new Lenders each month and enjoy a low-rate loan. I am not sure what is meant by rolled over, does it mean you keep the same rate with no loss of interest waiting for a match or does it mean it will be placed on the market. If it is placed on the market I cannot see the difference between Monthly and Rolling as you can use investment setting to achieve this, if this is the case it is not a Rolling market/contract except in the name. Nothing has changed really, just a brand name change. As very kindly pointed out by some diligent forum members, the contracts were not always 1 month. Therefore it was better to call it rolling. However it operates in exactly the same way, the interest AER earned will be for that contract period only. If the money is reinvested then it will get a new contract and a new AER at that prevailing rate. Kevin.
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