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Post by ruralres66 on Aug 5, 2016 8:49:00 GMT
I have been looking with interest to see if any P2p and RS in particular is going to come up with some comments/statements post BoE interest rate reduction and likely impacts on P2P.
With QE and other measures, won't it make P2P less attractive as will productivity down and unemployment up and the economy flat lining?
Does this possibly-likely spell the "end" of the Altfin sector ( for the mass investor market) or it acquiring a "Long Term (Health) Condition Status"?
I would expect and like to see some scenario modeling at least...........
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Post by GSV3MIaC on Aug 5, 2016 10:32:32 GMT
/mod hat off
I think the impact on P2P is extremely hard to guess.
On the wider economy .. my take is that the credit addicts have just had the strength of their narcotic topped up. I.e. the can has been kicked further down the road, and Mr Micawber is out on the streets again. But then, this is politics - anything beyond the next election does not exist.
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Post by westonkevRS on Aug 5, 2016 13:43:36 GMT
Any fall in rates, if subsequently passed on to the unfortunate saver will be good for P2P. I think one of the key drivers at the moment is the Santander 123 account and other lookalikees, if they drop that rate ("Santander 12 Account") then it will make many savvy savers think about where to park their cash. AltFi have provided a round-up: www.altfi.com/article/2165_interest_rates_fall_p2p_platforms_overwhelmingly_positiveKevin. |
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jonah
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Post by jonah on Aug 5, 2016 20:08:41 GMT
Any fall in rates, if subsequently passed on to the unfortunate saver will be good for P2P. I think one of the key drivers at the moment is the Santander 123 account and other lookalikees, if they drop that rate ("Santander 12 Account") then it will make many savvy savers think about where to park their cash. AltFi have provided a round-up: www.altfi.com/article/2165_interest_rates_fall_p2p_platforms_overwhelmingly_positiveKevin. Noooooooooo please noooooo. I have just managed to stuff the last few pennies into various places. I really don't want to have to find homes from the end on my 123 accounts. Of course, a decent rate on RS could be tempting.... 
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Post by graham34 on Aug 6, 2016 14:57:17 GMT
Santander 123 pays 3%. I'm not sure that 123 - 0.25% is going to make a massive difference to P2P investment.
Recall they increased the monthly fee from £3 to £5 at the start of the year which was nearly as dramatic.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 6, 2016 15:07:56 GMT
Santander 123 pays 3%. I'm not sure that 123 - 0.25% is going to make a massive difference to P2P investment. Recall they increased the monthly fee from £3 to £5 at the start of the year which was nearly as dramatic. Yes but the rumoured drop to 2% on the account plus the £5 fee (from £2) makes the account less attractive compared to some of the lower rate/lower risk P2P than currently
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jonah
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Post by jonah on Aug 6, 2016 15:10:48 GMT
Santander 123 pays 3%. I'm not sure that 123 - 0.25% is going to make a massive difference to P2P investment. Recall they increased the monthly fee from £3 to £5 at the start of the year which was nearly as dramatic. Yes but the rumoured drop to 2% on the account plus the £5 fee (from £2) makes the account less attractive compared to some of the lower rate/lower risk P2P than currently This was my concern also. A 2% account will require me to find a home for the cash in my 123s.
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jonah
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Post by jonah on Aug 6, 2016 15:12:44 GMT
westonkevRS one implication of this rate change is that the RS graph e.g. half way down here www.ratesetter.com/aboutus/statistics needs to have a tweak to have the BoE rate as a variable not a constant. Might be worth giving one of the IT folk a nudge 
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ilmoro
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Post by ilmoro on Aug 6, 2016 15:44:23 GMT
DM feeling positive about p2p today Here. AC seems to be beneficiary of today's fluff piece |
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star dust
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Post by star dust on Aug 15, 2016 13:20:43 GMT
Any fall in rates, if subsequently passed on to the unfortunate saver will be good for P2P. I think one of the key drivers at the moment is the Santander 123 account and other lookalikees, if they drop that rate ("Santander 12 Account") then it will make many savvy savers think about where to park their cash. AltFi have provided a round-up: www.altfi.com/article/2165_interest_rates_fall_p2p_platforms_overwhelmingly_positiveKevin. This morning Santander has announced a larger than expected reduction in its 123 account rate, from 3% to "Monthly interest of 1.50% AER / 1.49% gross (variable) payable on your entire balance up to £20,000 from 1 November 2016." Might be good news for P2P, but pretty bad news for those seeking lower risk and some FSCS protection on at least part of their savings 
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Liz
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Post by Liz on Aug 15, 2016 13:36:06 GMT
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 15, 2016 14:38:10 GMT
Any fall in rates, if subsequently passed on to the unfortunate saver will be good for P2P. I think one of the key drivers at the moment is the Santander 123 account and other lookalikees, if they drop that rate ("Santander 12 Account") then it will make many savvy savers think about where to park their cash. AltFi have provided a round-up: www.altfi.com/article/2165_interest_rates_fall_p2p_platforms_overwhelmingly_positiveKevin. This morning Santander has announced a larger than expected reduction in its 123 account rate, from 3% to "Monthly interest of 1.50% AER / 1.49% gross (variable) payable on your entire balance up to £20,000 from 1 November 2016." Might be good news for P2P, but pretty bad news for those seeking lower risk and some FSCS protection on at least part of their savings Also undoubtly going to be followed by all the other high paying current accounts. There is a possible risk to P2P as it becomes even more attractive to mainstream if there is nowhere else paying even reasonable rates and FCA considers that this means it requires tighter regulation. As as an aside I see a new p2P site has got full FCA authorisation (or so it claims) link
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