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Post by ruralres66 on Aug 30, 2016 9:27:31 GMT
Low rates are de rigueur atm, ...with my "dear John" letters from Tesco instant and Online saver falling on the mat this sunny post Bank Holiday morning -with 0.35% cuts for both as of November, despite the BoE only being a 0.25% cut..... The Government do not want savers it appears, so what is one to do? P2P rates are only a response to Government monetary policy and general market forces I feel.
Maybe Moneyweek's doom and gloom- and my Money Morning Bulletins,
Savings Tax – be prepared It’s already spreading through Europe… Destroying everything you thought you knew about saving and investing. Here’s how to prepare for “savings tax” immediately........ London Investment Alert is published by MoneyWeek Research Limited.
The End of Britain
You could be about to see years of saving and sacrifice wiped out. If this drastic measure from the Bank of England comes to pass: You won’t be able to set aside money for your kids. You won’t be able to save money for your retirement. You will be FORCED to spend your hard earned cash – whether you like it or not. Find out what the Fail Safe Monetary Act means for you – before it’s too late. .....Is correct all along!
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Wellesley & Co (W&Co) in Administration
Rate Reductions
Aug 25, 2016 15:59:19 GMT
Post by ruralres66 on Aug 25, 2016 15:59:19 GMT
I did show a passing interest in Wellesley & Co a few months ago as they offer joint accounts, but the new shiny application pack is still in the envelope. This thread suggest I am wise to leave it there!
And we have been berating RS for their drop in rates.......and narrowing of the market with the forthcoming closure of the 3 year fund. Looks like the writing is on the wall for P2P, with Government printing of money QE and lots of other goodies proposed.
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Post by ruralres66 on Aug 24, 2016 8:49:14 GMT
There is no "one month" any more, it now being "rebranded" as "rolling". Somewhere it is still being referenced on the RS website as monthly I believe. This should be removed and the situation spelt out clearly for the less aware lenders.
The only sweetener on the Rolling market now is the no fee for Sellout.
BUT what will happen in a crisis? No Sellout may be possible and people unaware may not realise that.
We need much more info from RS about the heirarchy of RA decision-making if (and possibly when) a melt down happens ie. who RS decides to get what discretionary treatment re- sellouts, withdrawals, bad debt coverage from PF etc and in what order.
We urgently need an update review of Resolution Events which are likely no longer fit for purpose as RS change their business model or it "evolves"...
So, come on RL, we need you to act on this pronto, for me it's an imperative. I have reduced my RS exposure by more than 50% in August alone.
Uncertainty erodes confidence in the business model as it stands and Resolution uncertainty, lack of info on what early repayments actually mean could potential undermine success of RS long term. It was nice whilst it lasted over the past 3 years or so but no more in the present post Brexit climate and QE measures....
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Post by ruralres66 on Aug 18, 2016 10:12:53 GMT
Forgive my ignorance, but how does one scutinise the PF and make some sense of it?
How can it be determined if "pay early" is either a default/loss covered by PF or a reloan by borrower?
I would like to have some transparency by RS as to the conditions of "repaid early" loans.
Otherwise, it is hard to assess risk -whether as a "sophisticated" lender or an "also ran".........which is how I would regard myself, criteria aside!
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Post by ruralres66 on Aug 15, 2016 9:28:05 GMT
All true, although it also means lower borrower APRs, which attracts lowers risk customers and ultimately lower defaults. That's my personal preference from lower lender returns. But I also appreciate it means lower lender returns. But that's the beauty of the markets. And we can hardly be expected to not look for more lenders. We aren't a charity, and platform stability is paramount. Kevin. "But that's the beauty of the markets......" An unfortunate turn of phrase westonkev; the markets are anything but beautiful for savers or lenders ........ The Government is fueling credit and speculation which we, lenders are subsidising in the form of being forced to accept derisory returns to shore up mortgages, debit or profligate life styles. I wish........I might join that club as there is little point in seeking proper returns any more - so the government/politicians will win.
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Post by ruralres66 on Aug 11, 2016 12:06:28 GMT
Peer-to-peer lenders in the UK have moved to reassure investors they are in safe hands amid calls for tougher regulation of the nascent sector.
"City grandee Lord Turner warns on peer-to-peer lending risks. Former FSA chief says failure to check ability to repay loans could lead to big losses. Stockholm-listed Trust Buddy, which had planned a significant expansion in the UK, processed £10m of loans in the first half of 2015. In February, the industry attracted the ire of former Financial Services Authority chief Lord Adair Turner, who predicted that “the losses which will emerge from peer-to-peer lending over the next five to 10 years will make the worst bankers look like lending geniuses”.
'This prompted anger from the P2PFA. Christine Farnish, chair of the Peer-to-Peer Association and a former member of the Financial Services Authority, said Lord Turner’s comments were “unfair” and “ill-informed”. This is in contrast to the UK, where the focus was on making sure that consumer protections were proportionate to the risks.'
Comment from FT earlier this year;
"his aspect is not always grasped by investors. If i can lend for 5 years at 6% over the equivalent gilt the proportionately implies I am taking a lot of risk. The other problem is of course what goes on behind the scenes. How much communication is there? The FT recently highlighted poor communication at one lender. The involvement of professional lenders also raises question marks about cherry picking. This, I believe, is being regulated against but I (an investor) am unclear how effective this is. The operation of contingency funds by some providers gives some reassurance but the opaqueness makes assessment of adequacy difficult. The P2P sector was a great idea and initially sold as retaking power from the big banks. Well banks are now involved! And as we saw with banks, unless properly regulated, where there's brass, there's muck. I am withdrawing as an investor. I understand risk but I dislike opaqueness. It is often forgotten that the FCA is geared to financial products that are 'sold'. P2P is not 'sold'. It may work well (it has for me so far) but if it goes wrong..."
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Post by ruralres66 on Aug 11, 2016 7:40:25 GMT
See Financial Times article about p2p safety. The industry, critical press and regulators are all calling for informed lenders, lender's sophistication and the understood risks, so more transparency is needed. I won't reinvest without more information. Nor will many others. I thought the game plan here was out with old banking style of operations and in with new...........Time to leave old habits behind me thinks Weston kev........ I need more transparency end of.🐓
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Post by ruralres66 on Aug 11, 2016 5:42:21 GMT
The RS website clearly states loans in the Rolling will be made in the 6 month to 5 year market. There is little info as to how much will be proportioned to the 5 year "market". Won't this simply be a RS business mechanism for reducing rates and increasing profits from more churn?
I would expect to see a clear graph or statement on the website to see what is going where within the Rolling market; the performance and rates being a far cry from the previous monthly where I was getting 3.8 regularly. I'm out from RS from now in this respect.
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Post by ruralres66 on Aug 5, 2016 8:49:00 GMT
I have been looking with interest to see if any P2p and RS in particular is going to come up with some comments/statements post BoE interest rate reduction and likely impacts on P2P. With QE and other measures, won't it make P2P less attractive as will productivity down and unemployment up and the economy flat lining?
Does this possibly-likely spell the "end" of the Altfin sector ( for the mass investor market) or it acquiring a "Long Term (Health) Condition Status"?
I would expect and like to see some scenario modeling at least...........
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Post by ruralres66 on Aug 2, 2016 21:12:52 GMT
I am not sure of the details as RS offered this info within my monthly statement. As I currently have large 5 figure sum in 3 year at an average of 5.2% - mostly contracted 2015, I am expecting early repayments/ defaults to ensure. Having recently read the FT articles of doom and gloom re Provisional Fund capacity, I was minded to Sellout anyway. Having now discovered this forum and properly digested it's content over the last week, I think I will hang on for the moment. The Forum has provided me with sufficient understanding to make informed decisions I feel. Thanks a bunch to all who have shared their understanding. I had been really struggling getting any proper handle on RS as the website does not Convey the detail I required in a rounded way. I did attend the RS presentation in Parliament New City Agenda-so at least I could eyeball the CEO. I even asked a question which he failed to answer! The presentation was strong on history but thin on where P2P is likely to be going. I was not very impressed.......😣........ PS I saw the 2007 2008 crisis coming and planned accordingly. I a lay person, could never understand why others didn't. We seem to be drifting in that direction once again .
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Post by ruralres66 on Aug 2, 2016 19:27:03 GMT
Five year rates have dropped in the last few months ... in April I could get 6.5%; now I have to hold out to get 6.1%. If the economy does a brexit plummet, I guess the taxpayer will push more liquidity into the banking system and rates could drop further. The same brexit plummet could increase defaults, so the risk goes up as rates go down. The FTSE 100 hasn't grown in 20 years and I'm out. Potential bubble in commercial and residential property waiting to burst. Bond rates aren't worth the effort. Now putting P2P on hold. So, for the first time ever, I've got my retirement pot in a building society at 1%. Which won't be enough to cover a potential round of inflation kicked off by the dropping pound. Living in "interesting times" Yorkshire =online saver( via subsumed Barnsley) will be offering 1.30 as from September!
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Post by ruralres66 on Aug 2, 2016 19:20:25 GMT
"Retirement of the 3 Year market
After years of good service, today we are announcing the retirement of the 3 Year market from 5th October 2016.
When RateSetter launched in 2010, investors could choose between the Rolling and the 3 Year markets. Over time we added the 1 Year and 5 Year markets and made other adjustments so that our range now caters to three distinct investor needs: Rolling investment with no early withdrawal fees 1 Year investment (with early withdrawal fees) Longer term investment (with early withdrawal fees) Today, we recognise that the 3 Year market has been superseded by the 5 Year market as the choice for investors seeking a longer term investment. Click below to read more, including the transitional arrangements."
All comments welcome!
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Post by ruralres66 on Jul 29, 2016 11:03:26 GMT
I am new to this forum. It's extremely helpful. Thanks. I have dabbled in lending to both RateSetter and Zopa since 2013. I am a total novice! I have had insufficient time to really "test" or process withdrawals or sellouts as I have not needed to. In the current climate of financial uncertainty, I now wish to explore a sellout, just in case of either need or concerns about the market. I am not really bothered about maximising interest atm, I just wish to gain a better understanding of the system and secure a modest fair return on my lending "investment". I shall use a hypothetical sum invested in the 3 year market which I wish to sell out in one go, or perhaps several smaller amounts over successive days.
My question is, is it better to sellout in small chunks?
Is there a time of the day best or a day of the week that's best?
I have looked at today's rates.
For the sell out of £89,000 at 5.2 in the 3 year market, ( loans- contracts from 2013 but mainly 2015-2016), fees are estimated at about £1500 giving a return of approx £87500.
If push came to shove and I really needed to sellout, I really need some advice and feedback as to best way to do this.Thanks in anticipation.
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