sl75
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Post by sl75 on Jun 7, 2016 13:31:24 GMT
I notice that the "My loans" page and the individual loan pages now explicitly state the monthly rate as 1%.
This would seem a likely step towards offering loans whose rates differ from this.
Announcement forthcoming maybe?
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goopy
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Post by goopy on Jun 7, 2016 14:06:31 GMT
Quite possible, can't think of any other reason it would be there.
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Post by trilby on Jun 7, 2016 14:15:46 GMT
Seems odd to express it as a monthly rate though - an 11% annual rate will be 0.91666...% monthly and 10% annual will be 0.8333...% monthly, which aren't very convenient figures to display. Unless they're planning to do 0.8/0.9% monthly (9.6%/10.8% annual) to keep things simple.
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Jeepers
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Post by Jeepers on Jun 7, 2016 14:25:29 GMT
Seems odd to express it as a monthly rate though - an 11% annual rate will be 0.91666...% monthly and 10% annual will be 0.8333...% monthly, which aren't very convenient figures to display. Unless they're planning to do 0.8/0.9% monthly (9.6%/10.8% annual) to keep things simple. That wouldn't be keeping things simple because it still says interest is calculated daily. With no announcement of any changes from SS, we find ourselves speculating again.
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Post by trilby on Jun 7, 2016 14:27:23 GMT
The homepage now says "up to 12% interest per year" and "up to 1% monthly return", from Google's cache from 3rd June it said "earn 12% interest per year" and "fixed 1% monthly return" in the same place. Clearly changes are afoot.
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Monetus
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Post by Monetus on Jun 7, 2016 14:28:24 GMT
The homepage now says "up to 12% interest per year" and "up to 1% monthly return", from Google's cache from 3rd June it said "earn 12% interest per year" and "fixed 1% monthly return" in the same place. Clearly changes are afoot. Yep - looks like lower rates are incoming. Will probably allow them to bring on more business.
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adrianc
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Post by adrianc on Jun 7, 2016 14:29:44 GMT
The homepage now says "up to 12% interest per year" and "up to 1% monthly return", from Google's cache from 3rd June it said "earn 12% interest per year" and "fixed 1% monthly return" in the same place. Clearly changes are afoot. Stranger still, look at the My Loans page. The interest rate is shown separately for each individual loan part, not for the loan as a whole. And there's an explanatory pop-up... "Earned interest is calculated daily by annualising this monthly rate." Doesn't that statement make your head want to hurt, just a little bit?
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Steerpike
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Post by Steerpike on Jun 7, 2016 14:39:36 GMT
LendInvest quote annualised rates on "Current loans" and net interest (monthly rate) to 4 decimal places when displaying "My Portfolio" which I find rather annoying.
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adrianc
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Post by adrianc on Jun 7, 2016 14:45:19 GMT
LendInvest quote annualised rates on "Current loans" and net interest (monthly rate) to 4 decimal places when displaying "My Portfolio" which I find rather annoying. Don't give Assetz more ideas...
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Jeepers
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Post by Jeepers on Jun 7, 2016 14:49:03 GMT
All the current pipeline loans show 1% monthly rate.
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Post by lb on Jun 7, 2016 14:51:20 GMT
Identical returns for totally different risk profiles is never going to last long
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Jeepers
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Post by Jeepers on Jun 7, 2016 14:51:33 GMT
Doubt we'll get an email solely to tell us the rates are dropping. That would be making too much of a point about it.
They will send a lengthy general update out and just have this as a small point within it. As they did when PBL 20 went into default.
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Jun 7, 2016 14:53:06 GMT
Or potentially introduction of premium/discount on SM? It's a bit unfair that the defaulted loan still trades at full value.
It should either be disabled or discounts added. But hey, its a free market and free will, nobody forces people to buy it, there is a big red 'default' image so really no excuse.
<edit>
PS.
Funny how they managed to squeeze all the different time periods in one sentence "Earned interest is calculated daily by annualising this monthly rate.". Anyone confused?
Any change that will modify rate that is not multiplication of 12 (I'm happy to see rates at 2% monthly) will make this a fractional number which just adds the noise. I hope SS is not taking example from AC and we won't see nano-percents.
</edit>
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Post by supernumerary on Jun 7, 2016 15:08:59 GMT
I notice that the "My loans" page and the individual loan pages now explicitly state the monthly rate as 1%. This would seem a likely step towards offering loans whose rates differ from this. Announcement forthcoming maybe? Saving Stream are doing very well with the current formula that they have introduced, so why would they consider changing it? It would make no sense to me. The fact that it states 1% per month, surely encourages more people to invest in the Saving Stream platform. That would be my take on it. If my memory serves me correctly, one of the founders has mentioned, along the lines, that the larger loans, which have a lower LTV, are safer. Recalling that the very large loan, PBL087 in Watford, was having difficulty filling, before it was pulled for other reasons. Surely to encourage MORE lenders on this site, lowering interest rates is not the way to encourage more lenders? Those are just my thoughts. 
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jun 7, 2016 15:25:32 GMT
It may just be a technical requirement in order to meet FCA approval. They get funny about AERs & APRs etc.
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