jo
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Post by jo on Oct 14, 2014 13:53:57 GMT
Yes, it's definitely the new website that's driving more deposits. Said no one, other than RS people. Ever.
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Post by yorkshireman on Oct 14, 2014 14:02:55 GMT
5.8 / 5.9% for 5 years? Might look good now but when the brown stuff hits the fan there will be a reality check on rates and 5.9 won’t look so good. 5%+ for 3 years, now that's a different story. If there was a prize for being an Ultra rate contrarian you would definitely win it! RS and Zopa were unknown quantities in their early days and the brave early adopters were rewarded with extra high rates. They might have lost every penny. After 5 years of emergency low rates we have a BOE Governor who would rather cut off his limbs than see a rates increase and the eurozone headed for a fresh recession due to a massively flawed monetary union. RS is almost 'establishment', much larger, much safer, and not surprisingly offering lower rates. Yes, UKIP might win the next election, sterling might tumble and rates might rise but the chances of returning to a 6% Bank Rate in the next 5 years are less than those of England winning a world cup. Of course if you have lived in a cave the last few years you might still think property is a good bet, but that is one market where the 12% returns might stop looking so clever if they end up as a 30% capital loss. Whilst I don’t expect bank rate to be at 6% in 5 years’ time, I do expect it to be above the BoE’s new “norm” of 2 to 3% and RS 5 year rates to be back at early 2012 levels of 7.5 to 8% within that time scale, hence my current preference for the 3 year market. As for property, I’m winding down my small amount of lending in anticipation of the market falling after the election.
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Post by jackpease on Oct 14, 2014 14:54:03 GMT
Yes, it's definitely the new website that's driving more deposits. Said no one, other than RS people. Ever. Yes of course, people saw the purple, they saw the white space, they thought they'd invest. The Apprentice is on tonight - 20 delusionals lined up for the slaughter - the Ratesetter redesign could so easily have been one of their tasks. Alan Sugar: "PALE TEXT ON PURPLE? WHITE SPACE? HIDING THE MAIN INFO? You're fired...." Jack P
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Post by geoffrey on Oct 14, 2014 20:15:30 GMT
Why would the lender be naive? Because the market rate yesterday was 6.2% Suddenly, in the evening, >50K was put on at 5.9%. I think there was maybe a couple of grand at 6.l%, and all of a couple of hundred at 6.0%, if that. I call it naïve to think you need to place 50K at 5.9% with that kind of queue. Undercutting the market rate by one tenth of a percent is fine, undercutting it by three tenths is ... bizarre (especially for someone with that kind of money to throw around on a single bid). In any case, my main point is that 50K can move 500K of funds (repayments pegged to the market rate, plus new money coming in). That's a poor deal for a lot of lenders. Sure, there's an element of market forces at work, but whether coincidence or something else, a 50K bid at that time of night should not have that kind of power, and I don't think it's particularly healthy for RS.
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Post by p2plender on Oct 14, 2014 21:32:21 GMT
agree
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Post by davee39 on Oct 14, 2014 21:54:22 GMT
Anyone can offer at any rate they like and use of the market rate is not compulsory. Imagine if our hairy, cantankerous, banana eating friend offered £50k at 0.2% above the lowest rate, thus moving the market the other way?
Perhaps its time to finally let this rest, Ratesetter Market Manipulation is unlikely to get a mention here 'http://list25.com/top-25-most-popular-conspiracy-theories/'
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Post by goldservice on Oct 15, 2014 7:03:47 GMT
Anyone can offer at any rate they like and use of the market rate is not compulsory. Imagine if our hairy, cantankerous, banana eating friend offered £50k at 0.2% above the lowest rate, thus moving the market the other way? Perhaps its time to finally let this rest, Ratesetter Market Manipulation is unlikely to get a mention here 'http://list25.com/top-25-most-popular-conspiracy-theories/' davee - perhaps one thing that keeps the debate going is that kev makes a general statement and then doesn't answer simple questions about it (eg mine of 12 Oct above).
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oldgrumpy
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Post by oldgrumpy on Oct 15, 2014 8:49:57 GMT
Anyone can offer at any rate they like and use of the market rate is not compulsory. Imagine if our hairy, cantankerous, banana eating friend offered £50k at 0.2% above the lowest rate, thus moving the market the other way? If I had £50K which I wanted to put in RS it might well be at 0.2% above the lowest rate, then wait, especially if there were just a few tens of thousands in that rate and it was late morning/early afternoon. He can do what he likes.
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Post by GSV3MIaC on Oct 15, 2014 10:36:14 GMT
You have to time it right to steer the reinvestment rate, and it's harder to steer it up than down (remember you have to move the 'few percent outlier' margin .. just pumping up the midrange doesn't do it).
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mikeb
Posts: 1,052
Likes: 463
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Post by mikeb on Oct 15, 2014 14:17:09 GMT
Perhaps its time to finally let this rest, Ratesetter Market Manipulation is unlikely to get a mention here 'http://list25.com/top-25-most-popular-conspiracy-theories/' Yes, but, only because WK is controlling that list to keep it at number 26 or below. Said too much already.
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Post by yorkshireman on Oct 15, 2014 15:24:38 GMT
Perhaps its time to finally let this rest, Ratesetter Market Manipulation is unlikely to get a mention here 'http://list25.com/top-25-most-popular-conspiracy-theories/' Yes, but, only because WK is controlling that list to keep it at number 26 or below. Said too much already. I expressed my thoughts on this some time ago and nothing has happened to change my view but regardless of this I have invested in the 3 year market recently.
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oldgrumpy
Member of DD Central
Posts: 5,087
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Post by oldgrumpy on Oct 16, 2014 13:05:24 GMT
See the "Queue" thread for update on this.
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pikestaff
Member of DD Central
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Post by pikestaff on Oct 16, 2014 18:09:11 GMT
5.8 / 5.9% for 5 years? Might look good now but when the brown stuff hits the fan there will be a reality check on rates and 5.9 won’t look so good. 5%+ for 3 years, now that's a different story. If there was a prize for being an Ultra rate contrarian you would definitely win it! RS and Zopa were unknown quantities in their early days and the brave early adopters were rewarded with extra high rates. They might have lost every penny. After 5 years of emergency low rates we have a BOE Governor who would rather cut off his limbs than see a rates increase and the eurozone headed for a fresh recession due to a massively flawed monetary union. RS is almost 'establishment', much larger, much safer, and not surprisingly offering lower rates. Yes, UKIP might win the next election, sterling might tumble and rates might rise but the chances of returning to a 6% Bank Rate in the next 5 years are less than those of England winning a world cup... davee39, I agree. The brown stuff is hitting the fan now, deflation is edging closer, and rates are heading down. Reported all over the place but here is an example: www.theguardian.com/money/2014/oct/16/fixed-rate-mortgages-fall-stock-market.
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Post by geoffrey on Oct 18, 2014 6:37:31 GMT
The brown stuff is hitting the fan now, deflation is edging closer, and rates are heading down. So, do you mean that soon we'll have to pay borrowers to take our money off us?
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