benaj
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Post by benaj on Oct 16, 2019 17:07:49 GMT
My "market rate" @ 5.4% on the old product is yet to be matched yet, that's been queuing more than a week!!! "market rate" on the old product is now 5.3%.
There's an important difference between an offer at "market rate" and one at a rate that happens to be numerically equal to "market rate" at the time it was created. A genuine "market rate" offer would have been automatically changed to 5.3% when the rate changed, whereas a "your rate" offer at 5.4% will be left where it is.
Either your offer is stuck at 5.4% and won't be matched any time soon (it'll likely be a month or two before the 5.4% queue gets touched again if it ever does), or your offer is indeed "market rate" in which case it's now at 5.3%.
The same distinction is almost certainly also present for the new products... i.e. a "going rate" offer in "max" would be treated differently to a 5.0% offer when the "going rate" is changed.
I learnt something new today, thanks sl75. The "new money market rate" is not the same as "reinvestment market rate". At the time I am writing, reinvestment market rate is 5.3%, while the real market rate is 5.2% The reason money got stuck for a week because it was new money @ 5.4%. Or more precise, new money market rate does not exist!!!
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robski
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Post by robski on Oct 28, 2019 10:33:15 GMT
5 year has no dropped to 5.2%, so in order to avoid a very large queue its 5.1% Wont be long before 5 year is matching Max, I would hazard a guess at a fortnight or so.
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upperdeane
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Post by upperdeane on Nov 2, 2019 17:55:30 GMT
5 year has no dropped to 5.2%, so in order to avoid a very large queue its 5.1% Wont be long before 5 year is matching Max, I would hazard a guess at a fortnight or so. You can do better than this on the one year. I had several chunks invested at over five percent in the one year this week.
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mikeh
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Post by mikeh on Nov 2, 2019 19:10:44 GMT
5 year has no dropped to 5.2%, so in order to avoid a very large queue its 5.1% Wont be long before 5 year is matching Max, I would hazard a guess at a fortnight or so. You can do better than this on the one year. I had several chunks invested at over five percent in the one year this week. My 1yr average is 5.1%, but my Access average is 5.8%!
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Stonk
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Post by Stonk on Nov 2, 2019 21:55:48 GMT
You can do better than this on the one year. I had several chunks invested at over five percent in the one year this week. My 1yr average is 5.1%, but my Access average is 5.8%!
Ah, but only because of spikes on the Rolling market leading to loans that have now been renamed as Access! Access itself hasn't gone anywhere near that ... although I live in hope that my friends Supply and Demand will soon dish up RS a timely reminder that they cannot and will not be stifled.
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robski
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Post by robski on Nov 4, 2019 8:35:05 GMT
So I matched some 5.4% I had put onto Max over the weekend, so I assume it hit 5.5% or so.
There is a constant trickle going on at 5.0% it seems as it keeps reverting so maybe thats investor money gong back at GR when people make extra payments, plus investors moving money around I assume
5 Year seems like its going to be stuck where it is for a while, its slowly getting nibbled away, but wound not appear to be high lending amounts going on. I do wonder however if RS will try to push a bit more there, since its only just above their target rate.
I hadn't realised until I looked, that after having a few Max written that the repayment schedule is in effect broken, unless I am reading it wrong, as it appears to show the full "rolling" contract as being repaid, which I know will then roll to another new one, less that months repayment. Thats seriously annoying since I relied on keep a decent rolling amount every month so that should I need some cash I could predict the amount that would be fee free to withdraw each month. I assume I am right and this is the case, so there is no direct specific way to see the repayments against these loans?
Its amazing the difference one decent lending week makes (it was up significantly last week)
Edit, realise it was 5.5%, not 5.4% that I matched at. Its someway off 6% (my real target for longer term lending) but if pushed I am happy at 5-6%, realise it will vary over time
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jlend
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Post by jlend on Nov 4, 2019 8:59:32 GMT
I don't think the new markets will stop the spikes.
Interest and capital repayments are not uniformly spread across the month, neither is new money comming onto the platform or money being liquidated.
With approaching a 3rd of new lending being directed at large property loans we may actually see short term rate peaks increase.
Of course there will be a lot of money reninvested at the going rate, but RS will still need the lenders willing to sit and wait for higher rates to fill large loans from time to time especially as there isnt any institutional lending via RS currently (well 1% institutional lending)
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Post by bernythedolt on Nov 4, 2019 23:13:05 GMT
With approaching a 3rd of new lending being directed at large property loans we may actually see short term rate peaks increase. Property loans portfolio is steadily increasing and new lending has risen well beyond 1/3rd now: October's statement confirms 43% written up this period (past 3 months).
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sd2
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Post by sd2 on Nov 5, 2019 0:20:28 GMT
With approaching a 3rd of new lending being directed at large property loans we may actually see short term rate peaks increase. Property loans portfolio is steadily increasing and new lending has risen well beyond 1/3rd now: October's statement confirms 43% written up this period (past 3 months). I thought rs was only 30% property. Or to be more precise 70% personal unsecured loans? Not really looking for property loans? Is that the same for zopa? I assume lending works is 100% personal unsecured loans?
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Post by bernythedolt on Nov 5, 2019 0:46:06 GMT
jlend was referring to new lending, as did my follow-up comment. Here is the latest summary from RS:- RateSetter’s diversified loan portfolio
(as of 31st October 2019: total may not sum to 100% due to rounding) All active loans(as a proportion of active loans) Consumer: 73% Commercial: 5% Property: 19% Wholesale legacy: 3% Written in the last 3 months(as a proportion of active loans) Consumer: 54% Commercial: 3% Property: 43% Wholesale legacy: 0%
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sd2
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Post by sd2 on Nov 5, 2019 8:00:22 GMT
I don't like the look of that. Moving into a saturated market (property) On the other hand is just something short term? Could you tell me where I find this information?
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Post by bernythedolt on Nov 5, 2019 12:04:15 GMT
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aju
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Post by aju on Nov 5, 2019 16:51:51 GMT
I don't like the look of that. Moving into a saturated market (property) On the other hand is just something short term? Could you tell me where I find this information? When I read that this morning about the Property stuff I had the same thought's, I feel another clarification question coming on and I've already got 2 outstanding with them as it is...
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sb
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Post by sb on Nov 6, 2019 16:16:01 GMT
I don't like the look of that. Moving into a saturated market (property) On the other hand is just something short term? Could you tell me where I find this information? I don't like this either. Entering the property market loans at the end of the cycle is a bad idea. I hope that they are not naive and don't trust the valuations. It is easy to lend money for big and illiquid properties, getting them all back is much more difficult. To be honest I am thinking of pulling my money. There is very little visibility what property loans they are taking on and RS messed up in the past expanding too quickly into markets they had no much experience in.
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robski
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Post by robski on Nov 6, 2019 16:47:16 GMT
I don't like the look of that. Moving into a saturated market (property) On the other hand is just something short term? Could you tell me where I find this information? I don't like this either. Entering the property market loans at the end of the cycle is a bad idea. I hope that they are not naive and don't trust the valuations. It is easy to lend money for big and illiquid properties, getting them all back is much more difficult. To be honest I am thinking of pulling my money. There is very little visibility what property loans they are taking on and RS messed up in the past expanding too quickly into markets they had no much experience in. Also made me think, I am definately going to watch that lending more closely, it could just be a blip. The problem to me with property lending is it can be so many things. The risks from eg a development loan to a far from experienced developer, well there are plenty of examples of them going wrong across P2P If they are business financing, lending at relatively low LTV to going concern businesses, but who need cash to expand, well thats different to me I had already planned to reduce my RS holding starting next tax year. As I have been transferring my everyday to my ISA as repayments come in (not actually added any new money to RS in probably 18 months now). But had planned to stop that process at the end of the tax year and actually go for a safe cash ISA for a few years. You never know FSCS safe cash may get higher % interest again at some point and having built up some years you benefit on it all. Need to look at the process of extracting from an ISA on RS, the nature of investing here maybe means you have to suck it up and move to instant before withdrawing to avoid fees on the bulk. Or maybe its better to just pay the fees and request a full transfer, Can you even do this when you end up with <£10 amounts. Or can you request partial withdrawls maybe once a quarter?
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