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Post by gravitykillz on Feb 16, 2019 17:00:09 GMT
Was wondering which market was the most popular among investors. 3 or 5 year ?
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IFISAcava
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Post by IFISAcava on Feb 16, 2019 17:44:36 GMT
Was wondering which market was the most popular among investors. 3 or 5 year ? all 5 year
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oldtimer
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Post by oldtimer on Feb 16, 2019 17:48:30 GMT
5 year for me also
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Post by gravitykillz on Feb 17, 2019 5:56:15 GMT
Im sure around 90% of people go for the 5 year market. Considering the withdrawal fee is the same for 3 and 5 year does not make sense to go for the lower rate. Only issue is lower repayments. If the withdrawal fee was lower for the 3 year market im sure more people would go for that.
But im sure by the end of 2019 the 3 year
market will be 6% and the 5 year 7.5% but lets see.
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Post by gravitykillz on Feb 17, 2019 6:02:12 GMT
I also think its a bad idea to advertise rates a few days in advance as any increase in rates would be a catalyst for withdrawals.
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benaj
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Post by benaj on Feb 17, 2019 13:27:10 GMT
Im sure around 90% of people go for the 5 year market. Considering the withdrawal fee is the same for 3 and 5 year does not make sense to go for the lower rate. Only issue is lower repayments. If the withdrawal fee was lower for the 3 year market im sure more people would go for that. But im sure by the end of 2019 the 3 year market will be 6% and the 5 year 7.5% but lets see. Not all the loans on 5 year market have 60 months term www.lendingworks.co.uk/peer-to-peer-lending/statistics/borrowersAverage loan term on LW is 42 months. I have 25% loans for 48 months, but nothing less. For those who intend to invest just for 5 years without paying withdrawal fee, check Lending settings_>Repayments from borrowers
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macq
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Post by macq on Feb 17, 2019 13:50:16 GMT
I also think its a bad idea to advertise rates a few days in advance as any increase in rates would be a catalyst for withdrawals. Guess they know their market as with the length of queue and the weekend notice probably not worth withdrawing cash as you will get the new rate.And by the time a sale of your loan went through you would have the fee and the make up the difference fee as well
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Post by Matthew on Feb 17, 2019 19:38:34 GMT
Interesting timing for this thread... We're looking to change our product offering in Q2 of this year - we'll be releasing "Flexible" and "Growth" products rather than the 3-year / 5-year options. Having spoken at length to many of our 3-year investors, they were mostly looking for a shorter-term investment (and 3-year investing was still deemed not short) and were particularly concerned with being able to access funds at potentially short notice. Our new Flexible product will offer fee-free loan sales for early access.
More details to follow in due course...
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Post by gravitykillz on Feb 17, 2019 21:19:52 GMT
And the interest rate for this fee free withdrawal product would be around 3.5 - 4% ?
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Post by Matthew on Feb 17, 2019 21:27:10 GMT
And the interest rate for this fee free withdrawal product would be around 3.5 - 4% ? Not necessarily... Initially we expect the rate to mirror the existing 3-year rate. Where it goes from there depends on supply and demand. Clearly if there is a stampede then rates will need to come down, but we've now got much more loan demand than we're able to service with existing capital inflows so we may well be able to maintain rates.
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Post by gravitykillz on Feb 17, 2019 21:35:03 GMT
5% interest and fee free withdrawal? So its pointless investing in the 3 year product right now when in a few weeks a fee free one will be released at the same rate.
Thank for the heads up matt. Looking forward to investing more funds with lending works.
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Post by df on Feb 17, 2019 21:54:47 GMT
And the interest rate for this fee free withdrawal product would be around 3.5 - 4% ? Not necessarily... Initially we expect the rate to mirror the existing 3-year rate. Where it goes from there depends on supply and demand. Clearly if there is a stampede then rates will need to come down, but we've now got much more loan demand than we're able to service with existing capital inflows so we may well be able to maintain rates. I don't understand why the queue is so long whilst loan demand is high, but I like the idea of "flexible" if it's similar to QAA or Rolling and at higher rates.
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Post by Matthew on Feb 17, 2019 22:32:18 GMT
Not necessarily... Initially we expect the rate to mirror the existing 3-year rate. Where it goes from there depends on supply and demand. Clearly if there is a stampede then rates will need to come down, but we've now got much more loan demand than we're able to service with existing capital inflows so we may well be able to maintain rates. I don't understand why the queue is so long whilst loan demand is high, but I like the idea of "flexible" if it's similar to QAA or Rolling and at higher rates. The queue isn't actually long anymore - there's only around £1m currently in the 5-year queue and it's moving quickly. We do need to ensure we always have a pipeline of capital to fund new loans, so there will never be no queue, but ideally it would be somewhere around 7 days.
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ashtondav
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Post by ashtondav on Feb 18, 2019 10:28:54 GMT
5% interest and fee free withdrawal? So its pointless investing in the 3 year product right now when in a few weeks a fee free one will be released at the same rate. Thank for the heads up matt. Looking forward to investing more funds with lending works. I would hope that your 3year portfolio is transferred to the new flexible account. Otherwise, yes, no point in investing in the 3 year account.
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Post by gravitykillz on Feb 18, 2019 20:35:19 GMT
5% interest and fee free withdrawal? So its pointless investing in the 3 year product right now when in a few weeks a fee free one will be released at the same rate. Thank for the heads up matt. Looking forward to investing more funds with lending works. I would hope that your 3year portfolio is transferred to the new flexible account. Otherwise, yes, no point in investing in the 3 year account. I dont think it will be.
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