alanh
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Post by alanh on Feb 7, 2020 10:54:58 GMT
Exactly. There is no charge to take your money out. You only "pay 2 months interest to pull your money out" if you have decided to take the early repayments and reinvest at the current market rate, and then decide to withdraw that invested money. I would suggest that investing at RS's going rate instead of setting a level of your own is a very bad idea.
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aju
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Post by aju on Feb 7, 2020 13:39:32 GMT
I think it's the same for all the products but I could be wrong I have my relend set from 5Y into 1Y, I also have all my accounts set for high percentages to trap this stuff too. What seems to happen is when the funds are > £10 they are moved from holding into the assigned relend place for those funds. Not sure if one had 4 products all relending into themselves then it might be possible to have higher amounts in the holding. That's a whole different angle I guess.
Of course that's what I see but I only have one new product in Access, which is only rolling re-badged and given different parameters to the original Rolling.
One thing I find intriguing is that despite RS trying to lower the rates, it's still relatively easy to get considerably better rates than the GR on any of the markets it's just a matter of diligence and timing.
I'm targeting either the 1Y and Access products only now - shorter terms and little or no costs is my motto - the 1Y is quite useful in that it's lend and leave just checking occasionally for any early pay offs. The Access is quite good as its rolling over at the same rates if they are good then it's a no brainer. Again watch for early payers by setting high relend rates - say .2 - .5% above your highest hit rates - these are what term punt rates.
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Post by Deleted on Feb 7, 2020 13:48:49 GMT
I think it's the same for all the products but I could be wrong I have my relend set from 5Y into 1Y, I also have all my accounts set for high percentages to trap this stuff too. What seems to happen is when the funds are > £10 they are moved from holding into the assigned relend place for those funds. Not sure if one had 4 products all relending into themselves then it might be possible to have higher amounts in the holding. That's a whole different angle I guess. The 1Y and 5Y markets allow repayments to be sent to holding or any other market. Access, Plus and Max repayments are directed into the same product ie no option to change market or use holding.
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robski
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Post by robski on Feb 7, 2020 13:54:44 GMT
The old products you had more control over what was lent in that you could specifically redirect part or all to holding. The new products you have no ability to send to holding
In RS speak this is because people want it. Of course they always could do that so you have to conclude thats total BS and they wanted to stop the wiser investor taking some charge on what was lent when.
After the recent influx of funds I am back in active withdrawl mode. I am actually glad the rates have dropped, I want to reduce my RS exposure (its circa 80% of my P2P now) and I am just not happy with that lack of balance. No where else I am happy yo put my money, I have 1 ZOPA loan left, and a slowly declining MT balance. None of the others in the current climate I am happy to invest into.
So I am doing odd things, Cash ISA at paltry rates, S&S ISA which is failrly risky, some premium bonds and clearing my car loan early that I took out as the rate was so low compared to my interest / investment returns. The Cash ISA will go to S&S after the next crash, its inevitable, it will happen one day.
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aju
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Post by aju on Feb 7, 2020 15:17:41 GMT
I think it's the same for all the products but I could be wrong I have my relend set from 5Y into 1Y, I also have all my accounts set for high percentages to trap this stuff too. What seems to happen is when the funds are > £10 they are moved from holding into the assigned relend place for those funds. Not sure if one had 4 products all relending into themselves then it might be possible to have higher amounts in the holding. That's a whole different angle I guess. The 1Y and 5Y markets allow repayments to be sent to holding or any other market. Access, Plus and Max repayments are directed into the same product ie no option to change market or use holding. Thx @inv11, in that case I'm ok with Access but MAX and PLUS are out with my strategy then. That said I guess if I wanted to use them I could just set high rates again as in Access and sweep up from there, albeit slowly. I'm not sure I would ever be lending using GR or MR but I should never say never. The fees may cut in on the 5Y and 1Y if I needed to pull out quickly for whatever reason especially if the 5Y have run for more than a year.
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aju
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Post by aju on Feb 11, 2020 10:08:41 GMT
My 5.8% on 1Y got lent early today, wasn't really expecting it but a loan for 1.6M went through so I guess a lot of people got lent out yesterday. The borrowers rate was 6.3% so I guess there might have been some higher rates than 5.8 swept up as well.
My order was placed on the 7th and to be honest I wasn't expecting it to be taken as I was waiting for some more funds to be returned (Only £19). None the less it's still a good rate. (I must set my punt rate a bit higher I think!)
Edit: Sadly I set Mrs Aju's higher value at 5.4% on the 9th again not expecting it to hit and it did this morning as well to the same loan. It's still a good rate for the 1Y and to be honest way above expectations coming into RS and our overall strategy. It also gives us a notion of where to set levels for next week's fund returns.
I was actually hoping to get better on Access but the funding wall does seem to be holding well over the last week or so.
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Post by Deleted on Feb 11, 2020 11:12:20 GMT
Think it reached at least 6%. There is now over 500k on offer to lend at 4.8%.
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aju
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Post by aju on Feb 11, 2020 11:31:47 GMT
Think it reached at least 6%. There is now over 500k on offer to lend at 4.8%. You may be right the loan I picked up was 1.6M @ 6.3% but how much of that loan was lent in one go may not be so easy to determine and how fast it was moved out. I'm guessing that if it was put onto the queue yesterday as one block then it would have sucked up the 841k sitting there at present at 6% and below and then some. Thing that we don't really know is how much of the 6.3% the loan is paying to RS and how far that RS would be prepared to take some higher rates relative to the lower rates just to get the loan serviced in the time the borrower is expecting. In Zopa terms my whole loan book is managed by them and their engine will give me a range of loans both higher and lower than a given average for my whole book in a given product. I know RS works differently but they presumably have to lend out the money in certain timescales and if there are no lenders at the lower rates then the higher rates will be added in relative to the overall loan, I think. Who knows what they are doing in terms of sucking out what they can to run the business and to be fair they have to do this otherwise they will fold pretty damned quickly. I checked back in the detail and it seems the loan does not pay anything to RS Anyone know why that is?
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Post by propman on Feb 11, 2020 12:39:59 GMT
Borrower fees p.a. 0.0% Including payments to the Provision Fund, RateSetter, partners and brokers Anyone know why that is? It would appear because there is no money available to pay any contribution with this! THey will need to take higher contributions elsewhere to balance it!
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ashtondav
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Post by ashtondav on Feb 11, 2020 12:46:15 GMT
Why is RS using money from 1 year at 6% when there buckets of the stuff available on access at 2.9%?
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Post by Deleted on Feb 11, 2020 13:02:17 GMT
Why is RS using money from 1 year at 6% when there buckets of the stuff available on access at 2.9%? Probably because it's a non-amortising property loan - I think they tend to go into the 1Y market.
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TheDriver
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Slightly bonkers
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Post by TheDriver on Feb 17, 2020 21:10:24 GMT
Why is RS using money from 1 year at 6% when there buckets of the stuff available on access at 2.9%? Probably because it's a non-amortising property loan - I think they tend to go into the 1Y market. They have traditionally done it that way, but of course that will now be a declining market as investors drop off without scope for replacement. I have a couple of bullet loans in Access, 12 & 18 months, whilst the only 2 I have in Plus are both monthly payers! I think this will be the new normal, but probably makes it more difficult for those investing for monthly income. It doesn't matter to me as I'm just putting longer-term savings to work, but I guess if you need that the answer is to have some cashable Access component; of course that means accepting a lower interest rate and a fortnight's reinvestment ban each time that facility is used!
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Post by propman on Feb 18, 2020 13:15:34 GMT
Probably because it's a non-amortising property loan - I think they tend to go into the 1Y market. They have traditionally done it that way, but of course that will now be a declining market as investors drop off without scope for replacement. I have a couple of bullet loans in Access, 12 & 18 months, whilst the only 2 I have in Plus are both monthly payers! I think this will be the new normal, but probably makes it more difficult for those investing for monthly income. It doesn't matter to me as I'm just putting longer-term savings to work, but I guess if you need that the answer is to have some cashable Access component; of course that means accepting a lower interest rate and a fortnight's reinvestment ban each time that facility is used! Ultimately it is only a timing point. P2P is only appropriate for those with a medium to long term time frame - due to uncertain liquidity. A rolling program of bullet loans will give regular (if less consistent) income as a proportion are repaid each month after the initial 12-18 months. Each month there should be high proportional interest paid (ie for the whole term to date) on fewer loans. In fact early repayments reduce the time before interest starts to become regular. The only issue is that to maintain this, you need to keep lending and this might require lower rates to be acceptedwhen lender funds exceed credit worthy borrower demand.
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Post by Undecided on Feb 29, 2020 7:52:29 GMT
I think the 1 year rate must have gone up over 5% yesterday for the first time in a while as there is very little cash on offer under 5.3% now. So may go up to reasonable levels this weekend.
Odd that there is £1.6m on offer at 4.6% in the 5 year account though. Why would anyone accept 4.6% for 5 years when you can get that in the Access account or at Assetz?
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Post by carol167 on Feb 29, 2020 9:16:20 GMT
I think the 1 year rate must have gone up over 5% yesterday for the first time in a while as there is very little cash on offer under 5.3% now. So may go up to reasonable levels this weekend. Odd that there is £1.6m on offer at 4.6% in the 5 year account though. Why would anyone accept 4.6% for 5 years when you can get that in the Access account or at Assetz? Spreading eggs between baskets maybe.
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