|
Post by bgreenwood2000 on Aug 9, 2019 17:07:04 GMT
I was an early adopter of RS, almost exclusively in 5 year. Then a change of circumstances meant I started withdrawing my repayments once a month as I needed extra income. Now things have changed again and I’m ready to invest again.... but they’ve changed so many things I’m lost!
I had never used Rolling, but decided to have a dabble. Made a match this morning and am confused to discover that the first repayment is due in only 5 days - why is this? Only after I’d put that money did I realise these are not actually one month rolling loans - mine has 48 months to run. AIUI, if I leave it to reinvest, I just stay in the same loan for its duration, at the same rate, irrespective of what happens to the market rate. What if I want the money out?
Second question: I will be in a position to add money to RS for the next 6-8 months, but may need access to it 6-12 months later. Which markets would you invest in to facilitate that?
|
|
rscal
Posts: 882
Likes: 484
|
Post by rscal on Aug 9, 2019 19:00:57 GMT
That loan could well be a repurchased loan through an investor exiting the market. The borrower obviously gets to keep their fixed contractual dates. The thing you need to understand about Rolling Market is the loans amortise in the same fashion as your 5 Year loans do (the 'good news') The 'bad news' is you only receive the interest portion of the repayments into your holding account - the capital portion is relent at a rate you can set for yourself or allow RS to set for you. By selecting a high relend rate (like 6% say) you can still have full RM repayment value returned to you therefore sinc it won't get lent out in practice and will just sit there in the holding account. Setting weekly withdrawal instructions to your bank then automatically sweeps this balance as desired and you can leave it along.
To access the full/partial/fixed sum investment just use the 'Release your investment' feature to request a sale in to market (no exit fee is charged) and you will be 'shut out' from the RM for a short period (10 days I think) which doesn't affect you since you are looking to drawdown only.
The problem with the RM aside from the cobbled way it now works are the rates are getting lower (3.5% appears the ceiling) unless you lend on a Sunday setting a highish rate which might be struck. Other posters can advise on how they fish for higher rates - which remain fixed whilst the loan amortises of course.
[HTH]
|
|
ceejay
Posts: 970
Likes: 1,149
|
Post by ceejay on Aug 10, 2019 8:14:38 GMT
... Second question: I will be in a position to add money to RS for the next 6-8 months, but may need access to it 6-12 months later. Which markets would you invest in to facilitate that? If you may NEED the money in 6-12 months then you should put it into an FSCS cash account. No P2P offering can guarantee return of funds - that's why you expect a higher rate of interest. In turbulent political and financial times, especially so. If there is a little wiggle room on "need" then you could put it into the RS rolling market and in normal conditions you'll get it all back when you want it. However, unless you get lucky, the rates aren't brilliant at the moment. Personally I'd put that kind of money into AC 30DAA (5.1%) or GS (5.3%, one month notice).
|
|
|
Post by bgreenwood2000 on Aug 10, 2019 11:25:19 GMT
Personally I'd put that kind of money into AC 30DAA (5.1%) or GS (5.3%, one month notice). Thank you..... can you explain the acronyms, please?
|
|
mikeh
Member of DD Central
Posts: 499
Likes: 370
|
Post by mikeh on Aug 10, 2019 11:32:03 GMT
Personally I'd put that kind of money into AC 30DAA (5.1%) or GS (5.3%, one month notice). Thank you..... can you explain the acronyms, please? Assetz Capital 30 day access account or Growth Street.
|
|
|
Post by bgreenwood2000 on Aug 10, 2019 11:35:57 GMT
A totally different question, but still about helping me understand: how does RS look from a borrower's perspective? For example, at the moment there are 6 borrower orders on 5 year at 5.7%, adding up to over 60K. The first lender offer is at 5.8%, but only a couple of K, so they would need to go to the 5.9% money to fulfill the demand.
Do borrowers get told sorry, we can't offer you a loan at 5.7% but we can at 5.9%? Do they have a choice of waiting until money at the rate they want becomes available, or getting a loan now at a higher rate? Or do they just get given a loan which is more expensive than they wanted to pay?
|
|
|
Post by propman on Aug 11, 2019 10:15:06 GMT
AIUI borrowers generally get offerred a rate. RS then fills that on the market sometimes having to offer lenders more interest than they are "receiving" and sometimes less (of course in practice this is just a change in the fees they will receive). As a result, most borrower offers are put on by RS to entice people to lend below the achievable rate. Not sure whether diret lenders are different. When these were the same for all, borrowers were offerred the rates available from lenders offers. If they didn't accept this, they could request a rate and the amount after PF contribution and RS fees was put on the market. Then borrowers could go back later and find out what the rate would then be if the unmatched part was matched to existing lender offers. Of course if enough people were prepared to accept the request, the loan was made.
Not checked for a while and it is a bit obscure due to intermediaries now, so I may no longer be correct.
- PM
|
|
|
Post by bgreenwood2000 on Aug 11, 2019 16:26:37 GMT
Oh, so quite different from Zopa (the first P2P platform I was on), where the fee taken by the platform was fixed.
I should say I have been trying to find details of how the different types of loan work, fess, matching process etc on the RS site, and can’t find it. Put it like this - there are many details which the FAQ’s don’t cover.
for example, can anyone tell me how to find out how much money is being lent in each market?
|
|
ashtondav
Member of DD Central
Posts: 1,804
Likes: 1,086
|
Post by ashtondav on Aug 11, 2019 16:41:39 GMT
Just got a good wedge hoovered up at 6%. Who cares about the day glo website...
|
|
|
Post by propman on Aug 11, 2019 17:34:52 GMT
Oh, so quite different from Zopa (the first P2P platform I was on), where the fee taken by the platform was fixed. I should say I have been trying to find details of how the different types of loan work, fess, matching process etc on the RS site, and can’t find it. Put it like this - there are many details which the FAQ’s don’t cover. for example, can anyone tell me how to find out how much money is being lent in each market? Click "MArket Data" on the left side, amount on offer shown by market. If you want detail of the higher rates, click the "view full market" on the relevant market.
|
|
|
Post by bgreenwood2000 on Aug 14, 2019 15:04:40 GMT
That's what's currently on the market. I meant how can I find out volumes lent in each market per day/month/whatever? A queue of £500K looks very different if they are matching £3m per day to if they are matching £250K.
|
|
|
Post by propman on Aug 14, 2019 16:05:20 GMT
That's what's currently on the market. I meant how can I find out volumes lent in each market per day/month/whatever? A queue of £500K looks very different if they are matching £3m per day to if they are matching £250K. This isn't published, only the total for the week is (see Market Data / ratetrends and click weekly volume box and move start date forward so that individual weeks are visible. If you hover over a bar it tells you the amount above. Tuesday to Thursday 5 year is of order £1m/day, annual varies a lot, don't follow rolling. Friday erratic, Saturday around half a weekday (but varies), Sunday low, Monday lower than resyt of the week now as slow until the weekend repayments processed that happens late in the day.
|
|
|
Post by bgreenwood2000 on Aug 14, 2019 16:31:17 GMT
That's what's currently on the market. I meant how can I find out volumes lent in each market per day/month/whatever? A queue of £500K looks very different if they are matching £3m per day to if they are matching £250K. This isn't published, only the total for the week is (see Market Data / ratetrends and click weekly volume box and move start date forward so that individual weeks are visible. If you hover over a bar it tells you the amount above. Tuesday to Thursday 5 year is of order £1m/day, annual varies a lot, don't follow rolling. Friday erratic, Saturday around half a weekday (but varies), Sunday low, Monday lower than resyt of the week now as slow until the weekend repayments processed that happens late in the day. Thanks - I can see total volume for each week, but not how to break it down by different markets? (Sorry if I'm being thick). I've tried selecting/deselecting the markets, but the figure you get when you hover over is the same regardless, from which I infer it's total volume.
|
|
|
Post by propman on Aug 16, 2019 10:51:15 GMT
You can't find thuis, but by watching how much money the individual rates on different markets move you can estimate.
|
|