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Post by khampson on Nov 17, 2016 9:28:59 GMT
Hi I have not been around ratesetter for a while, I have noticed that the 3 year rate has been discontinued? What was the reasoning behind this and are there any plans to replace it with a new product?
Thank you
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happy
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Post by happy on Nov 17, 2016 9:57:25 GMT
According to Westonkev before he moved to pastures new it was because there was very little demand for that market now. So far there has been no announcements re any replacement product so apart from the 1 year market paying a single maturity payment if you want amortised repayment/income loans it is now either 5 year or 1 month it would seem.
IMHO the 5 year rate does not look too attractive right now so I am only placing short-term cash on the monthly right now.
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Post by GSV3MIaC on Nov 17, 2016 11:14:03 GMT
IIRC much/most of the three year money was going via a particular partner/introducer, and when that stopped the demand pretty much went away .. Sad, because it used to be a sweet-ish spot in the risk/reward spectrum (IMO) .. my crystal ball gets well cloudy out past a couple of years, so for 5 year fixed I want more than RS are offering, especially when the borrower has a one way bet (the 5% is only fixed for the lender; the borrower can go refinance at any time if the rates have fallen).
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adrianc
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Post by adrianc on Nov 17, 2016 13:47:01 GMT
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Post by propman on Nov 18, 2016 8:22:12 GMT
In fact, the info page has indicated a significant pick up in 3 year lending since the announcement. This actually started while they were still lending from a separate lender pool, but I assume the majority is due to the lower cost of funding from the rolling market.
- PM
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jlend
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Post by jlend on Nov 18, 2016 14:29:32 GMT
Am always a bit wary of new product announcement's before they actually land.
I remember RateSetter communicating this one but don't remember hearing about it again...
"Early redemptions. Our engineers are adding the final touches to a new way of dealing with early borrower repayments so that lenders get re-matched quicker. For example, if your 1 Year money is paid back after 6 months, the RateSetter engine will aim to re-match your money straight away and you'll only have to lend it for the remainder of the original term (i.e. another 6 months). Helpful, huh?"
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