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Post by penguin on Dec 5, 2017 13:33:46 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? I hadn't realised that was how the MR was derived, and that is useful to know. Always assumed it was some kind of supply and demand black box, with the workings known only to RS. It leads me on to wondering why rates drop so low from time to time, since non MR lenders must actively be matching at e.g. 5yr at 4%, as was seen not so long ago - this seems irrational behaviour
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Post by propman on Dec 6, 2017 17:44:07 GMT
Never seen it confirmed, but I believe that the MR is rounded down. As well as MR money, there is "lend it now" money as this is the most likely option to see when you go on the site. This is the (usually) RS derived offerred rates that is often below MR. In fact at one time RS's representative confirmed that at that time the average non-MR money was lent at a lower rate than MR! Basically unless the MR money is fully utilised fairly quickly, most of the money will be at or below MR and so the rate drops. It will only rise when there is strong demand after the MR money is used and significant money is lent at a higher rate. Basically rates drop until their is more demand than money at low rates.
- PM
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Post by martinde21 on Dec 7, 2017 12:40:07 GMT
Hey
1 Yr on Thursday at 1230 is at 5.0%, rolling at 4.2% and 5 yr at 4.1%.There were borrower requests of c. £250K in the 1 year market.
IMHO, this looks like property developers and/or businesses with 1 yr borrowing requirements are becoming more prominent in the RS borrower mix. This isn't a bad thing as the loans I think for these segments are secured, unlike the majority of 5 year consumer loans?
Somebody/someone also has £400k on offer to borrowers in the 5 year market at 4.1%. Oh dear.
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stokeloans
Member of DD Central
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Post by stokeloans on Dec 7, 2017 15:50:13 GMT
Is there a way to keep up to date with rate changes without having to log in and check the website all the time ?
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m2btj
Member of DD Central
Posts: 630
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Post by m2btj on Dec 7, 2017 16:14:06 GMT
Not that I'm aware of.
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