clay
Posts: 33 
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Post by clay on Jun 28, 2016 12:56:58 GMT
I had an early repayment today, and with nowhere planned for the cash I decided to put it in the Monthly Rolling market; I've been on a slow drawdown so this is my first RS investment in ages. One quarter of the money has been loaned out for just 24 hours.
Is this a freak occurrence, or are loans this short now?
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Post by yorkshireman on Jun 28, 2016 13:59:11 GMT
I had an early repayment today, and with nowhere planned for the cash I decided to put it in the Monthly Rolling market; I've been on a slow drawdown so this is my first RS investment in ages. One quarter of the money has been loaned out for just 24 hours. Is this a freak occurrence, or are loans this short now? I got a 4 day loan yesterday.
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alender
Member of DD Central
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Post by alender on Jun 28, 2016 16:07:07 GMT
A few months ago I had a 3 day loan and an 4 day loan, these both ended at the weekend, as rates were low on Monday missed out on higher rates so requested a withdrawal and lost interest waiting for RS to pay me the money after requesting it 9am on Monday morning.
These short loans are probably due to picking up the end of someone else’s loan who has asked for an early repayment probably as a result of Brexit.
Complained to RS as I these short loans lost me interest and asked is there any way I can reject a loan as it is too short a period (I think about 2 weeks should be the minimum). RS said you do not get a choice and there is no way you can find then length of the loan until you have it allocated to you.
Have not used the monthly market since due to low rates and being allocated very short contracts. I have moved short term funds elsewhere at 4% with no waiting for funds to be allocated to a loan (interest paid as soon as it is deposited), no loss of interest after money repaid waiting for it to be allocated to a new loan and can request my funds anytime without penalties.
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Post by swfab on Jun 28, 2016 16:13:21 GMT
It does seem to be a freak occurence, for June anyway. I've never had this happen before until this month (went back checking only previous six months).
I've had so far (not including two loans that were repaid early, which are ok):
2x 2-day loans.
1x 4-day loan.
2x 5-day loans.
1x 15-day loan.
I know a borrower can repay early but I was not aware that loans could be taken up for less than a month, especially one day or just a few days.
A policy change?
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spiral
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Post by spiral on Jun 28, 2016 17:01:35 GMT
Its the unintended consequence of making it "fee free instant access".
In order to cash out, someone needs to take it over so if I have a 30 day contract and sell it after 25 days, someone has to take the contract for the remaining 5 days.
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Post by swfab on Jun 28, 2016 17:07:37 GMT
Annoying but it makes sense.
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alender
Member of DD Central
Posts: 957
Likes: 647
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Post by alender on Jun 28, 2016 17:25:57 GMT
It does seem to be a freak occurence, for June anyway. I've never had this happen before until this month (went back checking only previous six months). I've had so far (not including two loans that were repaid early, which are ok): 2x 2-day loans. 1x 4-day loan. 2x 5-day loans. 1x 15-day loan. I know a borrower can repay early but I was not aware that loans could be taken up for less than a month, especially one day or just a few days. A policy change? I think the increase of these is a result of the EU referendum, some people are deciding to cash in just in case and these loans get allocated to next one in the queue whether it is 29 days or 1 day.
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jonah
Member of DD Central
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Post by jonah on Jun 28, 2016 18:06:26 GMT
Have not used the monthly market since due to low rates and being allocated very short contracts. I have moved short term funds elsewhere at 4% with no waiting for funds to be allocated to a loan (interest paid as soon as it is deposited), no loss of interest after money repaid waiting for it to be allocated to a new loan and can request my funds anytime without penalties. Mind suggesting where?
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Post by yorkshireman on Jun 28, 2016 18:20:09 GMT
Have not used the monthly market since due to low rates and being allocated very short contracts. I have moved short term funds elsewhere at 4% with no waiting for funds to be allocated to a loan (interest paid as soon as it is deposited), no loss of interest after money repaid waiting for it to be allocated to a new loan and can request my funds anytime without penalties. Mind suggesting where? Lloyds current account perhaps?
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jonah
Member of DD Central
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Post by jonah on Jun 28, 2016 18:58:13 GMT
Lloyds current account perhaps? *blush* I have one of those. I'd assumed p2p, but I guess that is why assumptions are bade.
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Post by yorkshireman on Jun 28, 2016 18:59:10 GMT
Lloyds current account perhaps? *blush* I have one of those. I'd assumed p2p, but I guess that is why assumptions are bade. It was just a guess!!
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alender
Member of DD Central
Posts: 957
Likes: 647
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Post by alender on Jun 28, 2016 21:54:46 GMT
Have not used the monthly market since due to low rates and being allocated very short contracts. I have moved short term funds elsewhere at 4% with no waiting for funds to be allocated to a loan (interest paid as soon as it is deposited), no loss of interest after money repaid waiting for it to be allocated to a new loan and can request my funds anytime without penalties. Mind suggesting where? I moved to Landbay tracker (4%) for quick access and Assetz Capital for 30 day notice (4.25%) both have provision funds but unable to say how they rate against RS for risk but from my research seems good. Already maxed out Lloyds, BOS, Santander, TSB, Tesco at 3% to 5% at at total of £48,000 for a single person (no joint accounts).
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