ashtondav
Member of DD Central
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Post by ashtondav on May 17, 2017 7:25:19 GMT
No shortage of financial illiterates, idiots, geniuses lending in the 5 year market this month.
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Post by yorkshireman on May 17, 2017 10:03:33 GMT
Don’t play the game, withdraw repayments and interest from RS until lenders come to their senses. These rates are absurd for 5 years.
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Post by gidoppp01 on May 17, 2017 13:14:21 GMT
I stopped the 5 year lending a couple years ago. The rate dropped to 3.7% 30 mins ago.
There are much better alternatives out there and I withdrawn most of money from RS 3 months ago. I guess most of the investors don't check out uSwitch comparison. Ratesetter still offers 3% as their lowest rate on personal loans.
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ashtondav
Member of DD Central
Posts: 1,805
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Post by ashtondav on May 17, 2017 18:38:30 GMT
Yes, all money now going into Zopa+.
Its gonna end in tears for these loonies. Even inflation is nudging 3%. Utter lunacy. Bonkers.
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Greenwood2
Member of DD Central
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Post by Greenwood2 on May 18, 2017 6:13:54 GMT
Many lenders probably have no idea what rate they are lending at. Invested at 'Market Rate' when it was at a sensible level and never checked since.
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Post by newlender on May 18, 2017 7:02:02 GMT
Well, I wouldn't say that Z+ is any more sensible really. Lending at 25% to E borrowers who make a first payment and then slide into default is a bit of a worry. Defaults do seem to be accelerating and I've gone over to the Classic product now. But I do agree that Ratesetter's 5 year rate is not worth touching at the moment. If I do re-invest from my Holding Account I simply put it on the market at a decent rate and just wait - it does go eventually. I have set 3.5% for 1 year and 5% for 5 year as a bare minimum. The 1yr shifts quite fast, the 5yr stays for weeks.
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Post by gidoppp01 on May 18, 2017 7:53:42 GMT
I guess nobody really study the rate trend on Ratesetter. There's no sudden increase in Weekly volume, more than £10m matched weekly but the rates get plummeted. Back in 2012, it was 8% for 5 year lending. |
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Post by yorkshireman on May 18, 2017 10:58:23 GMT
Back in 2012, it was 8% for 5 year lending. Those were the days!
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adrianc
Member of DD Central
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Post by adrianc on May 18, 2017 11:14:10 GMT
I guess nobody really study the rate trend on Ratesetter. There's no sudden increase in Weekly volume, more than £10m matched weekly but the rates get plummeted. Without doing full numbers, it does look as if the fall in rate and the rise in volume are sort-of-paired, though. Strip it down to just volume and 5yr, from about autumn 2015 - the first half is all fairly flat, then the volume starts to rise (but not smoothly) and the rate falls.
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09dolphin
Member of DD Central
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Post by 09dolphin on May 18, 2017 15:04:56 GMT
I really don't understand people lending on the rolling market at less than the rate of inflation. Don't they know that their money is being devalued when they lend at these rates? What makes it even worse is that you can get 3% interest from some banks. However I am sure that borrowers are appreciative of their generosity.
Fools and their money are soon parted comes to mind.
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Post by sayyestocress on May 19, 2017 8:13:30 GMT
What makes it even worse is that you can get 3% interest from some banks. 5 year is 3.5% right now... Utter madness! Personally I only still have money with RS (rolling only) because you can pay in via direct debit, thus providing me with an easily controllable and low amount direct debit towards meeting the direct debit quota that the 3% current accounts generally require. When you have multiple interest paying current accounts to maximise cash returns every direct debit counts! It's a bit ironic that I'm using a service that's supposed to cut out the banks so that I can make money on money held in those banks..
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Post by gidoppp01 on May 19, 2017 9:27:57 GMT
This is the Ratesetter exploit. Most investors do not understand RateSetter market rate and the fools remove the money from RateSetter because there are better alternatives.
Unless someone joins Ratesetter recently and invests only in 5 year lending, most of the other investors in 5 year lending will only have one really low rate from reinvestment.
Rates do go up and down. Traditionally, May is a month for ultra low rate. May is the worst money for Rolling, but the rate for one year lending @ 2.5% is absolutely shocking
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Post by yorkshireman on May 19, 2017 12:44:29 GMT
Extracting the urine is a suitable turn of phrase for what’s currently happening on RS 5 year.
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Post by newlender on May 19, 2017 13:33:57 GMT
There is over half a million on offer at 3.5% or below on the 5yr market. Now what was the inflation figure announced this week? So some folk actually want a negative return after tax over 5 years.
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oldgrumpy
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Post by oldgrumpy on May 19, 2017 13:42:54 GMT
Ratesetter fixes today's "Market Rate" at 3.5% for five year commitment by a carefully managed algorithm, then undermines even that frugal offering by fixing the so-called borrower offers at 3.2%. That is the way RS works.
If most of these lenders realised how much of their money now is being lent unsecured to businesses rather than private individuals, they might realise what a small proportion of the actual interest Ratesetter take from borrowers is actually now reaching the lenders disguised by the existence of the variable sized provision fund.
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