trium
Member of DD Central
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Post by trium on Dec 14, 2018 9:12:33 GMT
Interest rates available on new lending has been somewhat disappointing of late but the upcoming #889 care home loan lowers the bar to a previously unseen 4.5%!
Looking at the current active loan book, 105 loans are offered at 6.5% or less. 54 of these are <= 6 months into term and 89 are <= 12 months, a crude way of indicating that the majority of these loans are recent.
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Post by mrmister on Dec 14, 2018 9:32:11 GMT
As QE draws to a close interest rates are lilely to be driven up.
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Post by hammertime on Dec 14, 2018 10:27:10 GMT
Interest rates available on new lending has been somewhat disappointing of late but the upcoming #889 care home loan lowers the bar to a previously unseen 4.5%! Looking at the current active loan book, 105 loans are offered at 6.5% or less. 54 of these are <= 6 months into term and 89 are <= 12 months, a crude way of indicating that the majority of these loans are recent.
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Post by hammertime on Dec 14, 2018 10:29:01 GMT
Yes i agree i have been saying this for a while now.And so iv'e been looking at other P2P platforms to maybe invest in instead.
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ceejay
Posts: 975
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Post by ceejay on Dec 14, 2018 12:26:35 GMT
I'm struggling to imagine the scenario where it would be better to invest in this loan at 4.5% (or any loan of 5% or less) when you could instead put your cash into the 30DAA ? There you have just over 5% return and ("in normal market conditions") an easy exit route if you need it, with much better resilience against individual loan failures.
I worry that if 5% or less becomes commonplace, the rates on 30DAA and QAA will also come under pressure.
Or are we heading the other way, where the MLA slowly withers and the platform drifts towards being a FC or Z black box?
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Post by hammertime on Dec 14, 2018 16:37:39 GMT
It seems to look like it is going that way.
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benaj
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Post by benaj on Dec 14, 2018 17:34:42 GMT
It's hard to imagine 4.5% for investor when based rate was increased 130+ days ago. At least this is asset backed loan, unlike FC offers cheap unsecured loans @ 5% or lower.
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p2ploser
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Post by p2ploser on Dec 14, 2018 19:27:40 GMT
Interest rates available on new lending has been somewhat disappointing of late but the upcoming #889 care home loan lowers the bar to a previously unseen 4.5%! Looking at the current active loan book, 105 loans are offered at 6.5% or less. 54 of these are <= 6 months into term and 89 are <= 12 months, a crude way of indicating that the majority of these loans are recent. This is simple supply and demand. The only reason that they can offer loans at these rates is because people still buy them, directly through manual lending account, or more likely through the other accounts. I choose not to invest in anything that low to try to send a message but maybe this is a lonely, and failing, strategy!
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trevor
Member of DD Central
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Post by trevor on Dec 14, 2018 19:40:07 GMT
I use MLA to only invest in 8% plus. Anything else is through one of the protected accounts. I also was thinking that their interest rates were falling. As long as people invest in the property protected account then they will be able to have the odd loan paying less than 5%.
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Post by Proptechfish on Dec 14, 2018 20:59:20 GMT
Interest rates available on new lending has been somewhat disappointing of late but the upcoming #889 care home loan lowers the bar to a previously unseen 4.5%! Looking at the current active loan book, 105 loans are offered at 6.5% or less. 54 of these are <= 6 months into term and 89 are <= 12 months, a crude way of indicating that the majority of these loans are recent. This is simple supply and demand. The only reason that they can offer loans at these rates is because people still buy them, directly through manual lending account, or more likely through the other accounts. I choose not to invest in anything that low to try to send a message but maybe this is a lonely, and failing, strategy!I also don't invest in anything sub 8% with no protection, and don't think we are the only ones. In fact i'm quite surprised there seems to be enough demand for poor returns v's risk level but it's a strange old world.
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rscal
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Post by rscal on Dec 15, 2018 12:49:56 GMT
Presumably that 4.5% loan can go into the QAA fund (but only that fund)?
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warn
Member of DD Central
Curmudgeon
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Post by warn on Dec 15, 2018 17:19:30 GMT
Presumably that 4.5% loan can go into the QAA fund (but only that fund)? It could end up in the 30D also. Lots of headline 5% loans pay 5.1% to everyone in 30D, so this may not be any different.
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Post by df on Dec 15, 2018 17:56:20 GMT
Presumably that 4.5% loan can go into the QAA fund (but only that fund)? It could end up in the 30D also. Lots of headline 5% loans pay 5.1% to everyone in 30D, so this may not be any different. Yes, I've noticed 5% loans appeared in my 30-Day. I don't think it matters because QAA/30-day is more of a pot for underwriting unlike other auto-investment accounts. 4.5% is the lowest I've ever seen on AC. Curious if this loan attracted any manual investors.
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ton27
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Post by ton27 on Dec 16, 2018 14:32:25 GMT
Generally, I do not invest through my MLIA in anything under 7.5% and for LTVs above 65% or development loans only small amounts (low hundreds). For diversification, I do invest below 7.5% in my IFISA with LTVs of less than 65% and for short dated loans.
Having said that I do not go below 5.5%. Needless to say as rates have decreased I have found it impossible to maintain the levels of investment I used to have and hence there is a steady reduction in what I hold in AC
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Post by geldregiertdiewelt on Dec 16, 2018 15:34:59 GMT
Interest rates available on new lending has been somewhat disappointing of late but the upcoming #889 care home loan lowers the bar to a previously unseen 4.5%! Looking at the current active loan book, 105 loans are offered at 6.5% or less. 54 of these are <= 6 months into term and 89 are <= 12 months, a crude way of indicating that the majority of these loans are recent. pls allow this suggestion: p2pindependentforum.com/post/302485/thread
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