My guess is that it's an infrastructure problem. Possibly trying a new cloud services/IP/etc supplier, someone has cheaped out in sourcing or underestimated demand. That it seems have happened around ISA season is probably not a coincidence (especially when coupled with the lower rates on offer).
If the issue is the sale of loan parts, then there is a concerted effort to delay transactions to encourage more low offers. This could just be the same process as they juggle putting lending on the market with these sales. Either this has manual elements or the algorythm may have been optimised for different conditions when there was surplus ISA cash around.
...so what happens to <£10 loans - I suppose you are stuck with them till they finally mature
I am not a particularly sophisticated P2P'er, and apart from setting rates used pretty much default "behaviour".
I tried selling out one account (RYI) to test the water, and find in about £4k there are £90 worth of <£10 loans.
OK, not the end of the world, but annoying, and would be more so if wanting to move an entire ISA....
How does one prevent these small loans forming...?
Small loan parts form as the borrower repays, over time gradually reducing the outstanding principal. It's unavoidable. Once formed, I don't think there is anything you can do about them. You have to wait until they are fully repaid.
The only thing you can really do to minimise this effect is to place orders significantly larger than £10. If you start off with a £10 loan part in a 5 year loan, then it will spend almost its entire life being unsellable. If you start off with a £1000 loan part, it will remain sellable right until the very end. This is not an infallible technique, though, because a large order will often be split into multiple loan parts (beyond your control). Also, extra payments by the borrower can unexpectedly turn large loan parts into small loan parts.
I requested to release funds to move from rolling to 5 year but I might as well not bothered as it looks like they will not be available for some time yet,not even showing as processing .Maybe ratesetter should have an option to cancel these transactions
But now I've just looked again and my pending withdrawal request has now disappeared ...
I’ve noticed the same behaviour - it seems to be the next stage in the process - the withdrawal is no longer pending but it hasn’t actually been actioned yet. It’s daft but I think it is good news the pending withdrawal has gone. Took a day after my pending withdrawal disappeared for money to appear in holding account.
if the site was quicker maybe you’d never notice - the pending withdrawal would disappear and money would start appearing in your holding account - but everything is so slow you get these inconsistencies and there’s just no way to see the real situation.
it is truly hopeless and I’m amazed RateSetter haven’t said anything about what is going on.
Rolling is at 4.2%. Should that not imply a shortage of funds?
4.5% now (albeit with a £170K wall that will impede further rises for a while). This is a historically decent rate for Rolling.
The total amount on offer by lenders (£600K) is dramatically down compared to a few weeks ago, and is now back to the sort of level it usually is when we're not in new ISA money season. Same goes for 5 Year: much reduced lender offerings and now edging into the 6.0% wall.
Perhaps normal rates are coming back. Cross fingers! I'll get interested again at 6.5%.