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Post by Deleted on Feb 22, 2020 17:42:32 GMT
Just interested in RS ISA's - If an ISA is transferred into RS is it lent out in 'loan parts' so that it is diversified, as would be the norm with P2P, or can it actually all be lent to one borrower? This is the experience of a friend, and surprised to hear it, if it is indeed the case. Anyone have direct experience?
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benaj
Member of DD Central
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Post by benaj on Feb 22, 2020 18:17:57 GMT
Yes, it can happen, depending on the sum. Unlike Zopa / FC, you don't have to worry about diversification of individual loan www.ratesetter.com/help |
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Post by Deleted on Feb 22, 2020 18:58:12 GMT
To add...my friend also say's she is to receive interest annually [rather than trickling in] on this one loan which also seems 'unusual'. Having this relayed by phone so not entirely certain of the entire detail until monday, but this is an experienced P2P investor with ISA's with Z, LW and RS. Any thoughts/experience greatly appreciated..
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Post by Deleted on Feb 22, 2020 19:00:32 GMT
Yes, it can happen, depending on the sum. Unlike Zopa / FC, you don't have to worry about diversification of individual loan www.ratesetter.com/help Thank you for the information, it does ring a bell. And I think the ISA transfer in sum was £30k +
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 22, 2020 20:02:12 GMT
To add...my friend also say's she is to receive interest annually [rather than trickling in] on this one loan which also seems 'unusual'. Having this relayed by phone so not entirely certain of the entire detail until monday, but this is an experienced P2P investor with ISA's with Z, LW and RS. Any thoughts/experience greatly appreciated.. If she invested in a one year loan(s) they paid annually at term rather than amortising
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Post by Deleted on Feb 22, 2020 21:23:04 GMT
To add...my friend also say's she is to receive interest annually [rather than trickling in] on this one loan which also seems 'unusual'. Having this relayed by phone so not entirely certain of the entire detail until monday, but this is an experienced P2P investor with ISA's with Z, LW and RS. Any thoughts/experience greatly appreciated.. If she invested in a one year loan(s) they paid annually at term rather than amortising Thanks, just checked, and yes it is a single one year non-amortising loan, but the thing is at no point was this made clear; the ISA transfer in was made and it was invested in this way. As a RS investor myself I wasn't aware this could happen, it kind of seems against the general P2P ethos. I guess it doesn't matter other than she won't see the sum grow before a year is up, unlike her other ISA's which have tangible returns daily/monthly.
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Post by Deleted on Feb 22, 2020 22:06:52 GMT
bit of research...
from RS FAQ's
Can I Choose What type of Loan My Investment is Attached to?
"No, with RateSetter you do not need to select the borrowers that you are matched to.
All investments with RateSetter enjoy the diversification effect provided by the Provision Fund, which means that performance of an investment is determined by the performance of the whole loan portfolio, not the individual loans that an investor may be matched to.
We publish up to date information about the types of loans that are in the RateSetter portfolio along with our lending criteria. RateSetter’s expert team of underwriters undertakes all credit and affordability checking before making lending decisions.
Your investment will be automatically matched to a loan contract with a term of up to 5 years. There are two types of loan contract – amortising and non-amortising contracts.
Amortising contracts: repay instalments of capital and interest each month. This repaid portion of the capital will automatically be reinvested at the Going Rate or the rate you have chosen.
Non-amortising contracts: repay all capital and interest when the loan reaches the end of its term. The maximum term on these contracts is 24 months. If you are matched to a loan that repays at the end of the loan term, your interest accrues monthly until it is repaid, at which point it becomes Interest Received. Both Interest Accrued and Interest Received appear in your monthly account statements"
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