jo
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Post by jo on Aug 29, 2014 15:46:58 GMT
Looks like 5yr @ 6% is a comfortable level for now. Pretty steady all month with only very minor blips.
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pikestaff
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Post by pikestaff on Aug 29, 2014 17:01:39 GMT
The test will come on Monday when we have the 1st of the month repayments plus new cash in over the weekend. I'm braced for a small drop, but hoping I'm wrong.
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c88dnf
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Post by c88dnf on Sept 3, 2014 19:10:53 GMT
The test will come on Monday when we have the 1st of the month repayments plus new cash in over the weekend. I'm braced for a small drop, but hoping I'm wrong. Well while I was on a brief trip to Germany the 5 year rate did drop all of 0.1% to 5.9%, but those of us willing to wait 24 hours have still been making 6.0%. Now I'm back I see that the 5 year queue has dropped from £1.3m to £0.8m over the past 3 days. If there isn't a big inflow of deposits, rates might be on their way up. Possibly. 
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markr
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Post by markr on Sept 3, 2014 20:53:48 GMT
I've got a small order that's been about £100 off the front of the 6.1% queue for nearly a month, so I can be confident it's been a while since rates nudged over 6.0, and I'll be more or less the first to know when (if?) they do!
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c88dnf
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Post by c88dnf on Sept 4, 2014 9:16:29 GMT
I've got a small order that's been about £100 off the front of the 6.1% queue for nearly a month, so I can be confident it's been a while since rates nudged over 6.0, and I'll be more or less the first to know when (if?) they do! Congratulations on your patience, but have you worked out how much interest you've lost while waiting for 6.1%, compared to the extra you'll get for the 0.1%? Small actual sums on £100 of course, but the principle is still important. FWIW, the "start of month gusher" appears to be over. My money reinvested in 5-year went on market at 6.0% yesterday at £417k in the queue and is now at £43k. Today's reinvestment went in at £277k. You may get that 6.1% late today or tomorrow: good luck!
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markr
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Post by markr on Sept 4, 2014 14:20:39 GMT
Yes, I only left it there as a marker since it had got so close to the front of the queue (probably by others cancelling rather than by 6.1 offers being matched). While it's been there I've been reinvesting all my repayments at 6.0 and they've all been trickling through the queue and getting matched in a few days. It's reassuring to know that this is the best I could have done |
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Post by geoffrey on Sept 5, 2014 9:40:03 GMT
Yeah, I've got a few "marker" bids in as well, which help me to gauge where to place incoming money, and helpfully alert me by email when a particular rate is matched by a spike. I haven't had any 6.1% matches for a while. Since I'm always trying to shift more than I can actually shift at rates which I feel comfortable with (tying money up for five years, or roughly half of it for 2.5 years), I don't mind keeping some powder dry this way. I can fairly quickly deploy RS indolent bids elsewhere as opportunities arise (mostly in FTSE dogs).
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Post by yorkshireman on Sept 5, 2014 12:05:28 GMT
Yeah, I've got a few "marker" bids in as well, which help me to gauge where to place incoming money, and helpfully alert me by email when a particular rate is matched by a spike. I haven't had any 6.1% matches for a while. Since I'm always trying to shift more than I can actually shift at rates which I feel comfortable with (tying money up for five years, or roughly half of it for 2.5 years), I don't mind keeping some powder dry this way. I can fairly quickly deploy RS indolent bids elsewhere as opportunities arise (mostly in FTSE dogs). I’m not being rude but could you clarify part of the following statement please, “Since I'm always trying to shift more than I can actually shift at rates which I feel comfortable with (tying money up for five years, or roughly half of it for 2.5 years)”
I can appreciate the part about trying to shift etc. and tying money up for or five years as I have a similar problem but I cannot get my head round the 2.5 years part.
Perhaps you would be kind enough to illustrate this with a hypothetical example, I would like to place more money with Ratesetter but I’m not entirely comfortable with 6% for 5 years, regardless of BoE comments about 2.5 to 3% being the new norm for base rate.
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markr
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Post by markr on Sept 5, 2014 12:12:29 GMT
geoffrey, is it your £137 that's in front of me in the 6.1 queue?
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jo
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Post by jo on Sept 5, 2014 12:33:30 GMT
Yeah, I've got a few "marker" bids in as well, which help me to gauge where to place incoming money, and helpfully alert me by email when a particular rate is matched by a spike. I haven't had any 6.1% matches for a while. Since I'm always trying to shift more than I can actually shift at rates which I feel comfortable with (tying money up for five years, or roughly half of it for 2.5 years), I don't mind keeping some powder dry this way. I can fairly quickly deploy RS indolent bids elsewhere as opportunities arise (mostly in FTSE dogs). I’m not being rude but could you clarify part of the following statement please, “Since I'm always trying to shift more than I can actually shift at rates which I feel comfortable with (tying money up for five years, or roughly half of it for 2.5 years)”
I can appreciate the part about trying to shift etc. and tying money up for or five years as I have a similar problem but I cannot get my head round the 2.5 years part.
Perhaps you would be kind enough to illustrate this with a hypothetical example, I would like to place more money with Ratesetter but I’m not entirely comfortable with 6% for 5 years, regardless of BoE comments about 2.5 to 3% being the new norm for base rate.
If I may, this, from answers.com might explain: 'Calculate average loan life of a term loan: It will be different from final maturity, in case this is an amortising loan.In essence, you should be looking at this particular term loan as a series of shorter term loans with different final maturities.So to calculate the average life, you should calculate the average of these multiple maturities weighted by the debt sums (aka debt amortisation sums).- - - - -Say if you have borrowed £100 with semi-annual amortisation over a period of 10 years, £5 is due in 6 months, another £5 in 1 year... another £5 in 9.5 years and the final £5 in 10 years.In Excel use SUMPRODUCT function to multiply an array of maturities (0.5,1,...,9.5,10.0) by an array of debt sums (£5,£5,...,£5,£5). You'll then divide the result over the total amount (£100). The result should be 5.25 years.This is a reflection of the fact that your liability decreases over time.'
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c88dnf
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Post by c88dnf on Sept 5, 2014 14:55:57 GMT
I can appreciate the part about trying to shift etc. and tying money up for or five years as I have a similar problem but I cannot get my head round the 2.5 years part.
When you invest on Ratesetter or Zopa, your monthly repayments are formed of both interest and part of your original capital. Unless you reinvest the money, each month the amount of capital you have on loan reduces. It's akin to paying off a mortgage (assuming you aren't on an "interest only" mortgage!). The time taken for 50% of you capital to be repaid is slightly more than 50% of the loan period on Ratesetter and exactly 50% on Zopa, as they account for the repayments over 5 years in different ways.
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Post by geoffrey on Sept 7, 2014 6:13:49 GMT
geoffrey, is it your £137 that's in front of me in the 6.1 queue? No, that wasn't me, I must have been further back in the queue. However, I'm happy to say that both my 6.1% offers have been taken. With the base rate likely to rise and Scotland likely to leave the UK, I'm not sure I want to invest over five years at less than this sort of rate. I wonder if RS has Scottish borrowers, and how they'll manage repayment if/when Scotland sets up its own currency or joins the Euro.
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Post by geoffrey on Sept 7, 2014 6:20:37 GMT
I can appreciate the part about trying to shift etc. and tying money up for or five years as I have a similar problem but I cannot get my head round the 2.5 years part.
As jo and c88dnf have put it, you get roughly half your capital back with the amortizing payments after roughly half the time. Hence the reference to tying up half of the capital for 2.5 years (though some of the loans are four years, so you get more capital back faster in those few cases).
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markr
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Post by markr on Sept 7, 2014 13:47:52 GMT
Yep everything comes to he who waits, my 6.1 has gone so time to add some funds.
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Post by yorkshireman on Sept 7, 2014 16:40:58 GMT
My thanks to geoffrey, jo and c88dnf for the explanation.
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