aju
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Post by aju on Nov 16, 2016 9:39:57 GMT
rates creeping down, according to MSE (http://www.moneysavingexpert.com/latesttip/#loans)
- £7.5k-£15,000: New. Sainsbury's* (over 1-3yrs, needs Nectar card) is 3% rep APR. Next is Ratesetter* at 3.1% rep APR (2-5yrs).
- £5k-£7,499: M&S Bank* (1-7yrs) and Cahoot* are 3.8% rep APR.
- £3k-£4,999: Zopa's* 4.6%-6.9% rep APR, Ikano* 5.2% rep APR.
- £2k-£2,999: Zopa's* 6.9%-7.9% rep APR, Ikano* 7.9% rep APR (yet credit card loans are often cheaper).
- £1k-£1,999: Zopa* is 9.9% rep APR (2-5 yrs), Ikano* 11.9% rep APR (credit card loans are often cheaper).
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Post by jackpease on Nov 16, 2016 10:10:46 GMT
Next is Ratesetter* at 3.1% rep APR (2-5yrs). So why do people talk of manipulation and dodgy does! If you have to lend at 3.1% then there's no conspiracy behind paying us less than 3.1%? Jack P
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dandy
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Post by dandy on Nov 16, 2016 10:17:43 GMT
Next is Ratesetter* at 3.1% rep APR (2-5yrs). So why do people talk of manipulation and dodgy does! If you have to lend at 3.1% then there's no chance of ever being a profitable platform Jack P FYP 
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happy
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Post by happy on Nov 16, 2016 10:34:50 GMT
Absolutely right. massive QE programs in most western economies means we are awash with cheap money. In some ways you could argue we are still lucky to be getting the rates we are right now.
Outside of SME/property lending etc, where risk and perhaps some institutional reluctance to increase exposuse to these asset classes seems to be still providing us a premium, I doubt rates will do anything but go lower. We will perhaps have to wait for the fed to increase their rates significantly to see if this scenario will change, although a hard Brexit may cause the institutions to tighten their buttocks a little with a resultant reduction in their lending giving us a chance of higher rates (and probable higher systemic risk)
Personally, 5 year lending at these rates with inflation levels rising is not that attractive to me, so more of my portfolio is moving to shorter-term lending with the expection of matching or just beating inflation in the shorter term.
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aju
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Post by aju on Nov 16, 2016 10:51:39 GMT
The MSE link seems to suggest that these are the best rates not everyone gets these good rates there are a number of markets. The better rates come from those who are considered more risky, on zopa we don't get to chose these ourselves but the model seems to blend the rates and then we get higher overall. The trend is still very much downwards though as happy says its about our governments and their need to flood the market with cheap money.
One interesting aside is that when all all the money ends up with a few people and there are less people buying things the system must eventually implode as no one who can influence the system can eventually afford to buy things. Just a thought.
I've spread my money across a number of less risky products since I retired and can't afford the losses I could manage when I was in a job. I'm happy to make sure my nesteggs are not suffering from dreaded inflation tax and if I can get a bit more then its fine with me. I have no money in the traditional savings accounts at all, but I have used the current accounts to the max I am allowed, ok its taken a hit of late and my ISA is at a lower rate than i'd like. But couple that with my pension I have enough to get by on and have many good things as well so I have always been reluctant to move into more unknown territory - zopa and its rates are enough for me I understand it better than all the others and to be honest to be safe in some of them i'd have to put a lot more effort in than I do at the moment and there are other things I want to do, and my OH wants me to do too ;-)
Just remembered I have loans that are at way lower than 3.0% (1.92% in fact and in mar 2016 when rates were better) and some that are as high as 27.5% so in reality its more holistic than the individual loans. As an early adopter on zopa my true rates are even higher but you get the point.
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Post by Ton ⓉⓞⓃ on Nov 22, 2016 11:56:48 GMT
Hi happy you mentioned QE I suppose in that you were probably including the banks version of QE, FLS Funding for Lending Scheme which HMG/HMT got the bank to do in 2012. Just about as soon as that started Zopa rates started to fall to match everyone else (from memory). The end date of the scheme keeps getting pushed into the future as it approaches. Europe's ECB started a similar scheme this year with €400million, HMG may want our rates to stay low to encourage investment in the UK while and after we leave the EU. If inflations gets going it will be hard to know what to do or how to do it. But this is all beyond me. |
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