sd2
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Post by sd2 on Jul 10, 2019 9:43:46 GMT
I have rates of 5.6 to 9.4% in the rolling market. If I sell part of my loans which ones does ratesetter sell? I am hoping for an answer which begins with the number 5
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Post by Deleted on Jul 10, 2019 9:49:44 GMT
5
They sell loans on a last in, first out basis. I think I read somewhere that as Rolling loans roll over each month, you can "choose" which loans get sold by waiting until the day after it rolls over and then selling (as it's then the most recent loan).
I haven't tried this so no promises - others may have.
Also, I'm not sure what happens if you sell when you have two loans with different rates that roll over on the same day.
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IFISAcava
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Post by IFISAcava on Jul 10, 2019 10:01:26 GMT
I have rates of 5.6 to 9.4% in the rolling market. If I sell part of my loans which ones does ratesetter sell? I am hoping for an answer which begins with the number 5 last in, first out
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sd2
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Post by sd2 on Jul 10, 2019 10:56:41 GMT
Bugger last in 9.4 first 5.6.
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Post by df on Jul 10, 2019 11:06:16 GMT
5 They sell loans on a last in, first out basis. I think I read somewhere that as Rolling loans roll over each month, you can "choose" which loans get sold by waiting until the day after it rolls over and then selling (as it's then the most recent loan). I haven't tried this so no promises - others may have. Also, I'm not sure what happens if you sell when you have two loans with different rates that roll over on the same day. I've tried this in hope to sell an accidental 2.6% investment, but for some reason the algorithm sold something else instead. I concluded that roll over doesn't count, but your initial investment time. Not sure about how it works.
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Post by fiatlender on Jul 10, 2019 13:39:35 GMT
Also, I'm not sure what happens if you sell when you have two loans with different rates that roll over on the same day. Highest value loan gets sold first.
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Post by fiatlender on Jul 10, 2019 13:41:40 GMT
Bugger last in 9.4 first 5.6. Wait for the 5.6 to roll over and sell the following day.
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robski
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Post by robski on Jul 10, 2019 14:32:09 GMT
I don't have any rolling now, but when I was selling mine, I found loans written that day could not be sold It would go to the loans from the day before and then the day before that etc etc
The was pre rolling changes, but i suspect it still works the same.
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thedog
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Post by thedog on Jul 10, 2019 14:32:26 GMT
As has been said already "Last in first out" based on Rollover date. BUT SEE BELOW. So as has been said wait for the 5.6% to roll then sell it THE NEXT DAY. Loans cannot be sold on the day they roll so you have to wait until the next day.
BUT..... I (and friends) have noticed that (not surprisingly really) if you try to sell loan(s) which are at a rate below the current Rolling rate the system passes over that loan and sells the next one in the list of your renewals (It does not seem to "queue" your lower rate loan to sell at a later point when the market has moved, it says "you asked for £x so you're getting £x as quickly as possible"). I guess that's covered on the RS website when they say sales are subject to market demand so therefore if the Rate is 3% there is no demand, at that moment, for loans at 2.5% so we'll sell your 3.5%s instead....
A BUT TO THE BUT
In our experience this doesn't always seem to be the case for very small amounts (say £20) or if you sell a few low rates alongside higher rates. For example if you place an order to sell say £1000 of loans, £950 of which are at 3.5%, £50 are at 2.8% and the Rolling market is at 3% we have seen the market absorb all £1000. I THINK this may be RS providing liquidity, perhaps by using the 0.5% surpluses to "compensate" for the 0.2% shortfalls somehow. (As an aside if you sell a 3.5% loan when the market is at 3.0% does the buyer get 3.5%? I think not so where does that go.....)
And if lots of loans roll on the same date? Seems to sell the highest rate loans. So you have £500 9% and £500 5% all of which rolled yesterday and you order £300 then "surprise surprise surprise" it seems to sell the 9%s.
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Post by df on Jul 13, 2019 14:56:51 GMT
As has been said already "Last in first out" based on Rollover date. BUT SEE BELOW. So as has been said wait for the 5.6% to roll then sell it THE NEXT DAY. Loans cannot be sold on the day they roll so you have to wait until the next day.
BUT..... I (and friends) have noticed that (not surprisingly really) if you try to sell loan(s) which are at a rate below the current Rolling rate the system passes over that loan and sells the next one in the list of your renewals (It does not seem to "queue" your lower rate loan to sell at a later point when the market has moved, it says "you asked for £x so you're getting £x as quickly as possible"). I guess that's covered on the RS website when they say sales are subject to market demand so therefore if the Rate is 3% there is no demand, at that moment, for loans at 2.5% so we'll sell your 3.5%s instead....
A BUT TO THE BUT
In our experience this doesn't always seem to be the case for very small amounts (say £20) or if you sell a few low rates alongside higher rates. For example if you place an order to sell say £1000 of loans, £950 of which are at 3.5%, £50 are at 2.8% and the Rolling market is at 3% we have seen the market absorb all £1000. I THINK this may be RS providing liquidity, perhaps by using the 0.5% surpluses to "compensate" for the 0.2% shortfalls somehow. (As an aside if you sell a 3.5% loan when the market is at 3.0% does the buyer get 3.5%? I think not so where does that go.....)
And if lots of loans roll on the same date? Seems to sell the highest rate loans. So you have £500 9% and £500 5% all of which rolled yesterday and you order £300 then "surprise surprise surprise" it seems to sell the 9%s.
Thank you. That explains why I couldn't sell my 2.6% burden.
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