Lending Works

So Matthew just so you know, I'm gonna be very upset if the 6.6 ends up being a one week wonder.... 

Edit: especially as when I initially queued my cash a couple of hours ago it was 5 days but now it's 7....

Which is interesting given the way things are moving on RS....but hey.

Well that plus the rate being higher than it has before - the queue when I paid in on Friday (after they'd notified people) was a longer than it was the previous Fri. 

Don't panic if the queue gets longer as well as shorter before being matched....and keep an eye out for the email towards the end of the week detailing what next week's rates will be. Hopefully will stay the same but I can imagine if it did drop then quite a few people might take their money out of the queue which may or may not be a good thing!

It'll be interesting to see if they keep the rate for next week, tho I think it would be foolish if they didn't as a lot of new folk might just pull their money straight back out of the queue and RS is (ever so slowly climbing).
Mine is now showing as next day so in spite of the volatility it would seem the initial estimates are pretty good, possibly erring on the side of caution somewhat (tho I haven't yet worked out if the days are actual or working, but suspect it could be the latter), tho it also depends if your match does follow through to a full loan (have had a few bounce back). Re-investments seem to get matched very quickly tho, so at least once you're in you can stay in with minimal effort for as long as you want.

pom - The queue, especially on the 3 year market, is getting quite large so rates may have to come down to balance the books. A large influx of lending capital coupled with slightly stemmed loan demand has caused this. Although even a 30 day queue to get new funds matched only equates to around a 0.1% impact to the annualised rate over 5 years, assuming repayments are reinvested at the same, higher, rate on time. So it's better to wait a few weeks to match at 0.1% higher over a 5 year term, as I'm sure many of you are aware who hold out for certain minimum rates.

iren - Priority is only given for reinvested funds using Auto Lend unfortunately. Manually reinvested funds are treated as manual lending offers. We do aggregate offers on the same day though, so for example all your repayments on the 1st of the month will likely be lent as one new loan chunk.

EJi - Correct, allocated loans are those pending acceptance by borrowers. If the borrower does not follow through then your funds will be added back at the top of the queue. It's an unfortunate but important step in the process. You can't see the individual loan chunks until they are created, although we could find out our end if you needed to know this.

The number of loans per lender varies, but for a £10,000 account you should expect to be lending initially across around 5 or so loans, increasing significantly when reinvesting repayments. One key point to make is that our Shield diversifies across all loans covered by it, so matching 1-2-1 or in micro chunks should not affect the level of diversification risk. The Shield reserve fund and insurance protects all lenders, and a pooling event in the unlikely event that the Shield could not cover a missed payment/default would ensure that no one lender would be exposed to any individual default. This is only fair since you're not selecting your individual loan chunks.

Hope this helps.

Yeah to be honest I was kinda expecting it - but it will be interesting to see how much of the queue is still there come Monday (tho not interesting enough I think for me to add any extra to see it - do you have any plans to add anything to the site to show the queue length without having to take a place in it first?)