|
|
Post by Deleted on Nov 28, 2016 14:03:53 GMT
I have had money in the 1year market now for approx 8months
I think I may have misunderstood how it works as I set reinvestment to move to the Rolling Market and expected a constant stream of repayments as per Zopa.
However 8months in it still states that my entire deposited sum remains in the 1yr market.
Does this not amortize as loans are paid off? Will I just get my entire repayment and interest on the 1yr anniversary?
|
|
pikestaff
Member of DD Central
Posts: 2,136 
Likes: 1,484
|
Post by pikestaff on Nov 28, 2016 14:22:06 GMT
Loans on the 1 year market are non-amortising term loans, with capital and interest paid at maturity. This is "up to" 1 year per RS. You should be able to see the actual maturity date if you click through to the "On Loan" screen.
You will get the money back sooner if the borrower repays early or (from the provision fund) if the loan defaults.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,839
Likes: 11,068
|
Post by ilmoro on Nov 28, 2016 14:22:35 GMT
I have had money in the 1year market now for approx 8months I think I may have misunderstood how it works as I set reinvestment to move to the Rolling Market and expected a constant stream of repayments as per Zopa. However 8months in it still states that my entire deposited sum remains in the 1yr market. Does this not amortize as loans are paid off? Will I just get my entire repayment and interest on the 1yr anniversary? No, the one year market is an investment in a bond unlikely the monthly, 3yr & 5yr markets which are in amortising loans. So the 1yr market repays all interest & capital at term not in monthly installments.
|
|
|
|
Post by Deleted on Nov 28, 2016 14:33:18 GMT
Ok thanks for clearing that up, not a big issue either way but I was just confused. I have just put some money into the 5yr loan on Ratesetter. I can expect this to amortize over the period and I can have repayments made into the rolling market?
Can I also ask how early exit fees are calculated. It says minimum 0.25% and average of 0.7% but I can't find exactly how it's calculated. I probably should have cleared this up before putting money in .....
|
|
registerme
Member of DD Central
Posts: 6,183
Likes: 5,989
|
Post by registerme on Nov 28, 2016 19:20:09 GMT
There's been quite a lot of discussion about how sell out fees do or don't work on RS. Start here but I think there may be additional threads as well. |
|
|
|
Post by Deleted on Nov 28, 2016 23:13:03 GMT
There's been quite a lot of discussion about how sell out fees do or don't work on RS. Start here but I think there may be additional threads as well. Reading that I think I've been sold a kipper by the line on RS which suggests the average exit fee is 0.72% Thankfully I didn't put much in so if it's tied up so be it I'll set the repayments to move to rolling rather than reinvest in 5yr
|
|
|
|
Post by newlender on Nov 29, 2016 17:52:50 GMT
Please avoid automatic investment into the 5yr as therein lies ruin (as does most auto-reinvest). I can't really understand the market at the moment, with tens of thousands (£) queued waiting for 6%+.
|
|
|
|
Post by Deleted on Nov 30, 2016 11:36:50 GMT
Is there any explanation of how the Ratesetter exit fee is calculated, reading the other forum discussions I see some horrendous percentage charges.
I have only just made a deposit and attempted to withdraw to see what the fee would be and it was a tiny 0.2%
Is the trend that the percentage charge increases the longer the loans have been held ??
|
|
locutus
Member of DD Central
Posts: 1,059
Likes: 1,622
|
Post by locutus on Nov 30, 2016 11:51:47 GMT
Is there any explanation of how the Ratesetter exit fee is calculated, reading the other forum discussions I see some horrendous percentage charges. I have only just made a deposit and attempted to withdraw to see what the fee would be and it was a tiny 0.2% Is the trend that the percentage charge increases the longer the loans have been held ?? Yes, it is quite simple. Take the day of the week you made you investment, multiply this by the term, divide by 365, subtract the difference between the current rate and the rate you achieved, multiply by the number of current investors, divide by the current ordinal astrological phase, add the current mean London temperature in Celsius and finally subtract your birth year in seconds from the remaining figure before dividing by 100. Seriously though, the calculation is opaque and "may contain sensitive business information, or the details of our systems inner workings which may not be suitable for the public domain". I complained to the FCA.
|
|
|
|
Post by ruralres66 on Nov 30, 2016 12:05:32 GMT
I got severe cold feet this year and incurred a frostbite eye-watering set of fees of over £900 from "withdrawal"........but I was forced to sell out from multiple accounts incurring a high set of varying fees and "assignment costs".
I did sellout quite a sum.
|
|
adrianc
Member of DD Central
Posts: 8,948
Likes: 4,787
|
Post by adrianc on Nov 30, 2016 17:02:35 GMT
I got severe cold feet this year and incurred a frostbite eye-watering set of fees of over £900 from "withdrawal"........but I was forced to sell out from multiple accounts incurring a high set of varying fees and "assignment costs". I did sellout quite a sum. Mind if we ask roughly what sort of %age that was, and what the difference was between the then-current market rate and your average rate? My average 5yr rate is 6.3%. With the current market rates, I would take a very large bath if I sold out now - which is to be expected.
|
|
|
|
Post by GSV3MIaC on Dec 1, 2016 9:40:21 GMT
I'd expect the opposite in a sane system ... Current lenders would rip your arm off to take over some 6.3% lending. Sadly the RS sellout deal is not sane.
|
|
|
|
Post by stevepn on Dec 8, 2016 15:21:06 GMT
Please avoid automatic investment into the 5yr as therein lies ruin (as does most auto-reinvest). I can't really understand the market at the moment, with tens of thousands (£) queued waiting for 6%+. I agree. I ended up getting 2.1% for 3 years and ended up with other similar deals. I must admit it is my fault for not checking on them but my money is now steadily coming out on monthly repayments and early repayments. My last repayment will be Jan 2021 but hopefully it will get paid back early. I wonder how many other people fall for very low interest rates?
|
|
