niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Oct 7, 2014 16:00:09 GMT
I'm on 0% Admittedly it's only one loan, but it's disappointing to get nothing back when it was an accounting firm with a director's guarantee (loan 154). One assumes the guarantor is a chartered accountant, and that his reputation is probably worth the cost of the loan, so I can't understand how FC are unable to squeeze any recovery out of him/her. It's been 2 years so I've given up & gone to TC & AC.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Oct 7, 2014 14:16:05 GMT
Will arbitrary withdrawal amounts continue to be a feature of the new website? I have experienced the following phenomena with three different accounts since last night:
Account 1 23:37 06/10/14 First page showed £27.00 available to invest Dashboard showed £27.00 available to invest Attempted to withdraw £27.00 but only allowed to withdraw £26.00 due to “insufficient funds”
Account 1 14:15 today
First page showed £0 available to invest Dashboard showed £1.00 available to invest Attempted withdrawal of £1.00 refused due to “insufficient funds”
Account 2 14:09 today
First page showed £144 available to invest Dashboard showed £144.38 available to invest Attempted to withdraw £144.38 but only allowed to withdraw £144.37 due to “insufficient funds”
Account 3 14:21 today
First page showed £175 available to invest Dashboard showed £175.48 available to invest Attempted and allowed to withdraw £175.48
Where is the logic and consistency in that and how can investors have confidence in AC?
And I repeat my comment on another thread that I believe that there are there is an issue surrounding the recovery payment from the furniture retailer (auction 70) which I have unsuccessfully raised with AC’s MD. It's time for action not words gentleman.
I'm getting £200 "Available to invest" on my Dashboard, but a balance of £199 on the top right hand side.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Oct 2, 2014 8:01:46 GMT
Does this suggest that underwriters are paid cashback in return for their services? Or that they're competing with one another to see who can get out of this loan first? Or am I just jumping to conclusions based on no real info at all? All it suggests is the underwriters are well paid for their underwriting commitment, and that there is an element of competition between the underwriters to retrieve their funds ready for the next loan. Discounts of upto 0.5% have been used by various underwriters on most of the recentish loans. I can't wait for the new system that hopefully highlights any discounts on offer.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 30, 2014 13:13:38 GMT
<snip> I really hope that in a few years time we are not all plagued by automated sales calls offering to reclaim money lost on "mis-sold" p2p investments! Doubt if many of the P2P platforms will still be around to reclaim money from. Hope I'm wrong - about them being around that is - but I suspect more than a couple are already struggling to make it worthwhile. The market is certainly a lot more crowded than a year or two ago. Perhaps there will be a flood of new lenders when NISA's are eligible for P2x lending. Otherwise the effect of competition may winnow out the less effective platforms.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 26, 2014 14:29:48 GMT
Yes the honeymoon certainly looks like it is over but isn't that exactly what we should have expected? High rates of return spell HIGH RISK.
So now is the time to man up and take a bit of pain. Hopefully the original valuations were near the mark and in the worst scenarios we will get back most of our capital. If not say whatever naughty words come to mind, pick your self up and carry on as slightly wiser investor. Interestingly, fundingKnight just announced they'll be doing property bridging loans. We'll see what sort of rates the auctions produce, especially on a somewhat smaller site.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 26, 2014 13:44:52 GMT
Is there some way that one can see a summary or listing of the aftermarket activity in the previous day or week? It would be very interesting to see the volume of movements on each loan, especially with a view to judging the liquidity of one's portfolio. Perhaps the imminent new system has it already, but if not can it be considered for future development? I'm open to it but it will probably wait until after we get the new site out the door. Do keep reminding me until it, or something similar, appears. Thanks. Definitely it should wait until the new site is launched and bedded down.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 26, 2014 12:43:28 GMT
Hopefully AC strong words with the bridging loan lenders will bring the focus & urgency needed to get through the red tape. I'm not panicking (yet).
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 26, 2014 11:32:22 GMT
Is there some way that one can see a summary or listing of the aftermarket activity in the previous day or week?
It would be very interesting to see the volume of movements on each loan, especially with a view to judging the liquidity of one's portfolio.
Perhaps the imminent new system has it already, but if not can it be considered for future development?
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 26, 2014 8:02:43 GMT
You could be right but developers are an optimistic bunch by nature so 6 months seems too short for a PBL. Even if it's just to arrange for re-financing the time scale still looks too short especially with the new rules floating around about mortgage refinancing. Interesting times. I guess that in future the bridging loans will originally request an extra 6 months above what they estimate they actually need, and then simply repay early, avoiding any penalties.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 22, 2014 14:17:38 GMT
You can never really tell when the market will change. For example, it's quite likely that we'll be able to include our P2P investments in NISA's next April. Will the government's NISA regulations allow lenders to switch whole existing loans into a NISA? If I have £10K in RS for 5 years, adding £3K each year, I don't want to have wait for the 5 year loans to be repaid before being able to transfer them into a NISA.
A big advantage of Assetz Capital's current model is the ability to sell at face value without fees, so liquidating loans to invest in a P2P Nisa will be much more feasible than on RS.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 19, 2014 14:25:35 GMT
I'm just glad all the expense and drama of a break-up is avoided.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 18, 2014 13:42:10 GMT
The Zopa Model is far too generous. Where 1 year money is earning only 2% it is possible to save in Zopa 5yr at 5.2% and sell after 12 months for a 1% fee, thus earning 4.2% for 12 months. The whole basis of the monthly market on RS is the presumption that your position as a lender can be taken by another lender if you wish to withdraw. I don't see why the same can't apply to longer loans, which will make for a more efficient market place.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 18, 2014 13:35:40 GMT
You did, of course read the terms and conditions before investing, the fee is not kept secret. Actually the fee was not made public at the time of my investment, because there was no sell out option at the time, only a promise that such a feature was in the pipeline. Secondly even on the lender FAQ it simply says: "You can access your money that is on loan at short notice using the "Sellout" function. Sellout will allow you to sell your contracts provided there is a new lender available to match your existing loans. On the Sellout page, enter the amount that you would like to withdraw from any given market. Click "Calculate" and RateSetter will automatically identify the amount of loans to be sold to achieve the amount you would like to access. It will show the calculation of the interest to be paid and any fees due. You can then click to proceed."Also it says that " You can access your money that is on loan". If I have some 3-years loans made at 6.8% with a couple of months to go then this statement is simply NOT true. In theory I can access some of the money (by forfeiting the balance in fees), but in fact the clawback of interest earned on the previous 2 and a bit years, means that I actually get nothing back. For example I lent at 6.8% on the 3 year market, when the monthly rate was 4.1% (there was no yearly bond at the time). So I lose 2.7% which has been paid out over each of most of the 3 years, and that's before any admin fees.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 18, 2014 10:23:37 GMT
I have invested in ratesetter since its very early days. Originally there was no liquidity at all. I raised this with RS and was told they were looking into it. The impression I received from rs was that they were trying to avoid the FC style flippers.The introduction of the sell-out has helped matters, but perhaps it is time for them to move a little further ahead, particularly for the small investors. The situation raised in this thread is contrary to the spirit of rs and needs a better solution. I agree. Flipping on FC is a problem as it distorts the market rewarding those with time on their hands rather than genuine investors interested in lending to businesses. But that is not a problem on RS. An Assetz Captial approach would be best of allowing a lender to sell off a loan at a discount but not at a profit.
|
|
niceguy37
Member of DD Central
Posts: 504
Likes: 254
|
Post by niceguy37 on Sept 18, 2014 10:07:38 GMT
My father invested in RS in good faith for 5 years in the early days when the rates were considerably higher. Now his health is failing and could do with a bit of cash we looked into selling up, but the costs are horrific. We have some 5 years loans at 8%, and 3-years at 6.8%. I looked at it a fair return as an early adopter.
I think the fees are so exorbitant that if we sell out the 6.8% 3 year loan in the last month then the fees will be more than the value of the loan itself. So if I sold out my loan I would have to pay RateSetter for the privilege!
RateSetter has many excellent and innovative features, and is generally well run, but the sell out fees are, in my opinion, exploitative and just not fair.
In consequence I am running down my former investment of over £60K.
I'm surprised the regulator has not had something to say about it, but I expect they will wait for the first complaint.
RateSetter had an advantage over Zopa in being able to look at their system and design an improved model. But other platforms being designed now can benefit by including RateSetter's features, and there is strong and growing competition, so RS may end up having to review their sell out fees.
I understand RateSetter's motivation in trying to discourage lenders from lending for 5 years with no intention of hold to term. But a 1% selling fee, plus another lender to step in, should be sufficient deterrent, and would not, in my opinion harm the market but make it more efficient.
|
|