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Post by bernythedolt on Oct 4, 2019 13:34:10 GMT
Call me sad, but I used to enjoy logging into Ratesetter to check on the ebb and flow of market forces and whether the day's ever fluctuating figures offered the potential to snipe a loan at a decent rate (one which properly reflects the investment risk being taken) on any of the three separate markets. This approach has produced my reasonably healthy Access / 1 year / 5 year portfolio of 5.5% / 4.9% / 5.6% respectively - and I know many here have managed to beat that handsomely.
When I log on now, it makes my heart sink to see the miserable rates of 3% / 4% / 5% with no longer even a chance of fluctuation, given these rates are now fixed semi-permanently by Ratesetter. With Ratesetter now determining the rate - in place of lenders and borrowers by mutual agreement - it seems gone are the days of sniping a better deal, and I suspect Ratesetters have now sucked out what little remaining interest I had after the succession of negative changes they've been making recently.
Not being inclined to leave my investment languishing at (going rate plus x%) for weeks on end without a bite (as I believe will now happen, especially since there is currently over £3million languishing at 3% chasing a few £thousand of loan requests), I am looking elsewhere. I also dislike the fact that we can no longer predetermine the term of our loans, and can be matched randomly to a 1 year or 5 year loan, or anything in between, whereas we used to control that parameter ourselves.
I rue this complete loss of control over our investment parameters, both the percentage and the term of the loan. Any suggestions for a more interesting platform in this respect? Years ago Zopa used to be interesting, but is now dull as ditchwater and sadly RS has gone the same way this month.
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Post by bracknellboy on Oct 4, 2019 13:42:43 GMT
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sl75
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Post by sl75 on Oct 4, 2019 15:26:43 GMT
I'm pretty sure there'll be plenty of fluctuations, ebbs and flows, etc.
Also do put the queues that are "millions of pounds" into some context - the statistics show £548M lent 2019 YTD, at a point where we're 75% of the way through the year, suggesting it's on track for over £730M for 2019 full year, which is £2M per calendar day...
i.e. that £4.1M queue represents just 2 over days' loans, and if new money weren't being constantly added, the entire £7M+ on the marketplace represents just over half a week's worth of new loans.
Once the money at "going rate" is gone, highest matchable rate will certainly rise... and it may rise quite significantly if RateSetter don't have many lenders explicitly choosing their rates leaving the market quite thin.
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Post by bernythedolt on Oct 4, 2019 16:03:22 GMT
Nice analysis, sl75.
The worst aspect for me is RS hard-setting the loan rate rather than the market.
Time will tell how long our money languishes before securing an acceptable rate.
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mb
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Post by mb on Oct 4, 2019 19:43:52 GMT
Any suggestions for a more interesting platform in this respect? Lending Crowd. It's like Funding Circle in the early days. A company wants a loan. They tell you a bit about themselves and their financials and what they want the loan for and what the term is. You can even ask them (the potential borrower) a question and sometimes you'll get an answer. You put in bids at a rate of your choice (within limits). You can be knocked out by others bidding lower. There's a secondary market that seems to work. There are pros and cons of course, but it's the original p2p idea of matching lenders to borrowers. And they don't keep mucking about with the concept or the user interface.
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Post by bernythedolt on Oct 4, 2019 21:12:43 GMT
LC food for thought, thank you.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Oct 5, 2019 11:50:50 GMT
And they don't keep mucking about with the concept or the user interface.
Yet.
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