ashtondav
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Post by ashtondav on Nov 27, 2017 12:31:53 GMT
5 yr 3.8%
1 yr 4.3%
rolling 4.1%
Answers on a postcard, please...
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puddleduck
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Post by puddleduck on Nov 27, 2017 12:38:14 GMT
no mystery or postcard needed.
The rates always show the lowest lender offer at the time.
Simply put, someone had put in 3.8% into the 5 year market at 3.8%, so Ratesetter defaults to the lowest lender rate.
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Post by Badly Drawn Stickman on Nov 27, 2017 12:47:52 GMT
no mystery or postcard needed. The rates always show the lowest lender offer at the time. Simply put, someone had put in 3.8% into the 5 year market at 3.8%, so Ratesetter defaults to the lowest lender rate. Presumably that would then make that the 'Market rate' for reinvested funds with that setting?
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Post by skint4achange on Nov 27, 2017 12:50:24 GMT
It basically derived from the fact that a lot of people set their reinvestment % very low and then forget about it. Some people have their reinvestment level set at below 3%. As soon as they have some money repaid to them from their previous loans, it sends the market into free fall for a short time (Sometimes a long time!).
It is only really a problem in the long term if a large amount of lower % reinvestment funds become available.
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Post by skint4achange on Nov 27, 2017 12:53:49 GMT
Market rate is a bit hit and miss I find. I have watched the markets over a day and the market rate the next day bears no resemblance to what I saw the day before.
I think RS just make it up as they go along and use rates that are good for them. You will notice that no borrower offers are available sometimes until after a run of repayments. There will suddenly be £m's flood onto the market at very low rates and are taken up by the low rates investors have set for auto reinvest.
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ashtondav
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Post by ashtondav on Nov 27, 2017 13:21:52 GMT
Well that was quick! Just got matched at 4.4 and 4.6% in rolling.
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Post by skint4achange on Nov 27, 2017 13:24:16 GMT
Indeed. It swings all over the place during the day. There appears to be a pay run around 2pm and another one around 7pm. Approaching these times can produce some good rates.
I am monitoring the rolling market at the moment as I currently have my money sitting on the 1 year at between 6% and 6.5%. May switch down to rolling if the 1 year stays steady or drops
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Post by stevepn on Dec 2, 2017 10:00:04 GMT
2% on rolling at the moment isn't very good but I presume it is people who automatically reinvest their monthly interest and Ratesetter will oblige in screwing them for their stupidity.
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stokeloans
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Post by stokeloans on Dec 2, 2017 12:22:26 GMT
2% on rolling at the moment isn't very good but I presume it is people who automatically reinvest their monthly interest and Ratesetter will oblige in screwing them for their stupidity. Some people don't have time to be continually checking rates
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 2, 2017 12:44:26 GMT
Yes, and, unfortunately for them, their "Reward" for being loyal and automatically reinvesting, is to be shafted.
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mary
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Post by mary on Dec 2, 2017 14:11:19 GMT
2% on rolling at the moment isn't very good but I presume it is people who automatically reinvest their monthly interest and Ratesetter will oblige in screwing them for their stupidity. Rates are nearly always at their lowest at the weekend, so only invest on a weekday, and the day after a bank holiday often sees higher rates.
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ashtondav
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Post by ashtondav on Dec 2, 2017 17:06:52 GMT
Yes, and, unfortunately for them, their "Reward" for being loyal and automatically reinvesting, is to be shafted. Yep, that's always going to be the case for the dumb money. Lucky for us the dumb keeps us in clover! Can't wait for the seasonable peak in borrowing come january as they'll probably be some juicy rates in the last week or two.
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Post by wangja on Dec 3, 2017 0:46:41 GMT
2% on rolling at the moment isn't very good but I presume it is people who automatically reinvest their monthly interest and Ratesetter will oblige in screwing them for their stupidity. Come back on Monday. Weekend rates are freakish with very little activity.
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Post by penguin on Dec 3, 2017 16:25:02 GMT
I have never understood how the lenders who select market rate, who must, I assume, make up a significant portion of the whole, do not as a group simply cause a race to the bottom, especially in products like rolling which are just RS filling their own funding requirements. RS could take them up at 0.1% if they wanted - they have obviously decided not to so this for reputational reasons, but how exactly do they make a commercial judgement on this sort of thing?
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ashtondav
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Post by ashtondav on Dec 4, 2017 16:19:10 GMT
I have never understood how the lenders who select market rate, who must, I assume, make up a significant portion of the whole, do not as a group simply cause a race to the bottom, especially in products like rolling which are just RS filling their own funding requirements. RS could take them up at 0.1% if they wanted - they have obviously decided not to so this for reputational reasons, but how exactly do they make a commercial judgement on this sort of thing? Sorry, don't understand! MR is the weighted average of the previous day's transactions. In what way can those choosing MR be Manipulated?
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