ashtondav
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Post by ashtondav on May 17, 2018 8:23:58 GMT
its actually 0.425% for 30 day money. There is no commitment to that rate for a year and if you do get it for a year that is w/o taking into account any potential losses. How do you see a loss occurring in this PF-protected account ? If I compare AC's 30-day account @ 5.1% vs my oldest FC account and my Zopa account, each of FC and Zopa -is currently returning less than 5.1% (in my case) -has no provision fund -has a proven history of bad debt (quite a lot in Z at the moment) Accept AC might not use the PF against bad debt, but until that happens AC is a bit of a no-brainer for me. FC generating less than 5%!!! Blimey that’s their stress test result for a recession. happened to your wedge?
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ashtondav
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Post by ashtondav on May 17, 2018 8:22:43 GMT
Who gives a damn! 5.1% for 30 day money. Give me black box accounts or bonds any day. its actually 0.425% for 30 day money. There is no commitment to that rate for a year and if you do get it for a year that is w/o taking into account any potential losses. One year in a long time in this game ... I meant annualised. I very much doubt that AC will reduce these rates, if anything we are in a rising rate environment.
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ashtondav
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Post by ashtondav on May 17, 2018 7:10:59 GMT
jj - our margin remains the same regardless of which investment account is used to invest in a loan. 100% of the difference in rate between the MLA rate and the account rate is used to fund that account's provision fund. I was making an example. I don't know your margins. I can see the risk will be lower to lenders but it will make self selection pointless. I was making a case against P2P bonds which I think these kind of products will lead to. Who gives a damn! 5.1% for 30 day money. Give me black box accounts or bonds any day.
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ashtondav
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General P2x Discussion
Capitalrise
May 16, 2018 7:19:21 GMT
Post by ashtondav on May 16, 2018 7:19:21 GMT
I heard mention of this p2p outfit in p2p news. Does anyone have any views? AIUI all loans are connected to high value prime housing.
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ashtondav
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Post by ashtondav on May 14, 2018 17:10:48 GMT
I think the mandatory date is the end of May, which is not unreasonable.
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ashtondav
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RateSetter (RS)
MR only?
May 13, 2018 7:32:30 GMT
ozboy likes this
Post by ashtondav on May 13, 2018 7:32:30 GMT
A bog standard bank.
Mainstream banks get deposits from savers, at say 1% currently, and lend it out at say 6%, keeping that balance as profit. You are lending to thousands of people but you don’t know who.
The zopa model of p2p is becoming very much like a conventional bank. Deposit money with them for an expected return of 4% or so, and your money is lent out to thousands of people. There is no “person to person” in that model. It is person to p2p “bank” to borrower.
Only time will tell....
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ashtondav
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Post by ashtondav on May 12, 2018 12:20:04 GMT
Because the 17M will continue to sit there, until it’s owners go for lower rates. RS is not proposing they appropriate lenders’ money and invest it at MR, only AFTER it has been lent out. That 17M will probably never now be lent out, and will be withdrawn probably. I doubt RS is making any interest on those funds, and anyway the advantage of lower rates and more borrowers outweighs it if it did.
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ashtondav
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RateSetter (RS)
MR only?
May 12, 2018 6:39:26 GMT
Post by ashtondav on May 12, 2018 6:39:26 GMT
I think they are just experimenting in Rolling. If lenders do not withdraw funds on a significant scale RS will apply the MR rule to other lending periods, sucking in the dumb money and the poor suckers who own the dumb money. Then we get a recession.....
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ashtondav
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Post by ashtondav on May 11, 2018 14:34:29 GMT
1983 I paid interest of 13% on my 98% mortgage or £4,000pa (penal because of high LTV). Upgraded for inflation that would be about £12,000pa now. That would cover a £400,000 mortgage today. I realise the deposit would be an issue but hey, I’d have killed for a 3% mortgage!
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ashtondav
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Post by ashtondav on May 11, 2018 14:21:29 GMT
After all with F.C. what’s not to like about sending off a payment and getting 7%?
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ashtondav
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Post by ashtondav on May 11, 2018 14:21:07 GMT
No “p2p” will be with us but it will be the Zopa, FC, AC and soon RS black box models - it’s what most people want. A simple system for higher rates, they simply don’t want to do DD, bid for loans, endure the flippers and the bots, work out premiums and discounts on a SM etc. The big survivors who will grow big will be these players.
There will be a smaller market for us nerds who like to get our hands dirty for the extra wedge.
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ashtondav
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Post by ashtondav on May 9, 2018 14:05:24 GMT
Well for the first time ever (and I’m a founder member) I’ve made a monthly loss. Last month, on my £40k I made -£14 interest. Withdrawing repayments will continue.
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ashtondav
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Post by ashtondav on May 9, 2018 8:08:56 GMT
A lot of this is anecdotal. Is actual bad debt worse than forecast bad debt? I can’t recall seeing the stats.
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ashtondav
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Post by ashtondav on May 9, 2018 7:43:36 GMT
Ive pulled my 30k out of rolling and into AC where it will stay until MR hits 3.5%+. Pigs might fly when that happens.
The dumb money is being fleeced...
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ashtondav
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Post by ashtondav on May 8, 2018 16:10:24 GMT
Simples. AC for instant or one month money.
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