happy
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Post by happy on May 19, 2017 14:11:18 GMT
Well there is no point making too much money for your later life as all but £100k could now go on your old-age care costs Never mind oldgrumpy , it's the weekend tomorrow and there's an outside chance it might not rain the whole time......
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pip
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Post by pip on May 19, 2017 14:22:20 GMT
Well there is no point making too much money for your later life as all but £100k could now go on your old-age care costs Never mind oldgrumpy , it's the weekend tomorrow and there's an outside chance it might not rain the whole time...... We are seriously going off topic here, but it's the worst policy ever. The government is in a catch 22 though, you want to encourage people to save, but you know politically you can never support throwing old people who didn't save on the streets. But from an individuals point of view why bother saving or contributing to a pension if people that haven't just get bailed out by the state? In my opinion care costs should be paid for by a compulsory insurance scheme that everybody should contribute into and that is taxpayer backed. Let's be honest though a lot of the time people don't want 'Mum to sell her house shes been in for 40 years to pay for her care' is because the children want the money! All I can see from this policy is families with half a sense telling their parents to give everything away to their children before they need care and then saying, there we go, she has £99k left, all over to you the state...
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adrianc
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Post by adrianc on May 19, 2017 15:59:44 GMT
Let's look at what's REALLY happened... We'll split care costs into two. ResidentialNow - Threshold of £20k or so, house taken into account. After - Threshold of £100k or so, house taken into account. Change? Threshold raised, mightily.Home-visitNow - Threshold of £20k or so, house NOT taken into account. After - Threshold of £100k or so, house taken into account. Change? Threshold raised, but house taken into account.So the change will mean many people's children's inheritance is even more heavily subsidised by council tax payers... It wouldn't surprise me one bit if this meant that local authorities ended up paying more, overall. It'll certainly mean a big saving for my father, who'll go from paying for almost all of his home care to paying nothing at all... He doesn't own his home, and his income (almost entirely state pensions and benefits) currently keep pace with his expenditure - after this, his bank balance will actually rise quite healthily each month. Great for him and, frankly, me sooner or later. Very bad for the council tax payers of his local authority... All I can see from this policy is families with half a sense telling their parents to give everything away to their children before they need care and then saying, there we go, she has £99k left, all over to you the state... They already do substantial investigation where there's a suspicion of deprivation of assets.
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trevor
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Post by trevor on May 20, 2017 20:41:09 GMT
Back to topic. 5 yr market MR is 3.2% £1.2k then £152k at 3.4%.
My lending to RS is dwindling fast, but somehow I don't think they give a damn.
3.2% for 5 yrs with no FSCS, crackers.
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ashtondav
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Post by ashtondav on May 23, 2017 8:36:44 GMT
I suppose the rejoinder is that it is nearly twice the risk free rate from a BS, and with the flexibility to withdraw when payments are received. We have to remember banks are lending at these rates and offering mortgages at under 2%.
i wouldn't touch anything below 5.8% and seriously think there ought to be a penalty for financial institutions allowing "miss buying" as well as "miss selling". IMO it amounts to the same thing, but exploits the ignorance of the underinformed masses, rather than the snake oil skills of the banks.
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alender
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Post by alender on May 23, 2017 9:03:58 GMT
Another issues is that if/when rates go up anyone investing at these rates will take a hit if they wish/have to withdraw early except for rolling when I assume they are locked in until the end of the contract as no one will be bidding that low.
I would imagine that most of the money place at these low rates is from the MR or lend it now option. You can say that anyone investing at these rates knew what they were doing but I am not sure that is a good argument, if they knew what they were doing they would go elsewhere where the risk/reward ratios are much better.
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09dolphin
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Post by 09dolphin on May 23, 2017 17:40:46 GMT
Frankly I think some people are just stupid and are desperate to lend money. It shocks me that they don't know you can get 3% with a bank which is guaranteed and totally safe. However whilst people want to lend at stupid rates who am I to suggest they shouldn't
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Post by newlender on May 23, 2017 18:15:09 GMT
There is £1.4 million on offer in the 1yr market at 2.2%. Something strange is going on.
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alender
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Post by alender on May 23, 2017 18:30:51 GMT
There is £1.4 million on offer in the 1yr market at 2.2%. Something strange is going on. Nothing strange, it is RS strategy in the way it places borrower offers (along with other measurers) to reduce the MR and Lend it now working the way it was designed to maximize profits for RS. This has been discussed many times on this forum.
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mary
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Post by mary on May 23, 2017 19:49:56 GMT
There is £1.4 million on offer in the 1yr market at 2.2%. Something strange is going on. Nothing strange, it is RS strategy in the way it places borrower offers (along with other measurers) to reduce the MR and Lend it now working the way it was designed to maximize profits for RS. This has been discussed many times on this forum. Agreed, I'm taking everything out as it matures (or gets paid back annoyingly early) eventually the majority will realise and move on, however I suspect it will take a while. There was an offer from Ford Bank (sadly sold out) of 4% with FSC a day a ago. It's competitive out there!
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kaya
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Post by kaya on May 24, 2017 9:13:53 GMT
Feels like it was a good decision to take the fee-free exit!
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Post by yorkshireman on May 24, 2017 10:38:45 GMT
The lunatics have finally taken over the asylum. Sorry if that’s politically incorrect but it’s an apt description of the 5 year market at present. Last Matched Rates Rolling 3.0% at 11:24 1 Year 2.2% at 22:01 5 Year Income 2.8% at 11:02 Lending for 5 years at less than you can for 1 month??? Financial madness..
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iren
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Post by iren on May 24, 2017 11:58:52 GMT
5 year was down to 2.7% when I looked a few minutes ago. I don't see how it could be argued that these rates justify the risks inherent in the product, and I'd say RateSetter are in danger of bringing the P2P industry into disrepute.
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IFISAcava
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Post by IFISAcava on May 24, 2017 12:11:54 GMT
5 year was down to 2.7% when I looked a few minutes ago. I don't see how it could be argued that these rates justify the risks inherent in the product, and I'd say RateSetter are in danger of bringing the P2P industry into disrepute. And the rolling rate was the same (2.8%) as the 5 year when I looked earlier. Needless to say I'm not reinvesting into the 5 year at the mo.
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Post by yorkshireman on May 24, 2017 12:25:36 GMT
5 year was down to 2.7% when I looked a few minutes ago. I don't see how it could be argued that these rates justify the risks inherent in the product, and I'd say RateSetter are in danger of bringing the P2P industry into disrepute. I agree entirely, it would be interesting to hear what WestonKevTMP as an ex Ratesetter man has to say about these rates.
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