robski
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Post by robski on Aug 5, 2020 7:01:58 GMT
This is very frustrating - might contact them tomorrow to ask if this is how they intend to continue. I'm afraid it's two weeks now with no movement at all, rather than only one. Surely it makes perfect sense from RS's viewpoint to clear out the highest lender rates first (which I presume is the 5 year product), and replace them with lower lender rates. Yes, it's very frustrating for those in the other queues, but RS may no longer care what retail lenders think as they don't need them going forward. I'm not sure of that last point as they may wish to continue with secured loans for retail lenders, since Metro haven't said they want those. If so, i would expect a completely new product for this. Lowering the average lending rate will also benefit those stuck as it will reduce the cost to the PF if the reduced-rate loans fail. I don't know the mechanics of the platform well enough to know whether the interest margin between the old and new lenders will go to reduce RS's/MB's losses or will go to the PF. Anyway, the 5 year queue will soon be clear, so I expect the 1 year queue will start moving again soon. I don't expect that my Access RYI will be repaid before the loan ends. Which would all be great if there was any sign that RS have moved between markets, they havent however Maybe they will, maybe they wont In order to assist APM they would need to (as I speculated before) move loans from APM to 5 year. Which is two negatives to them Its moving to one of the markets they want rid of, 5 year, and to a higher rate product, 5 year most of the time has had higher rates than APM, and its currently matching most days around twice the rate (6% vs 3% roughtly) I.E. sorry but dont see it happening
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robski
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Post by robski on Aug 5, 2020 7:05:26 GMT
Surely it makes perfect sense from RS's viewpoint to clear out the highest lender rates first (which I presume is the 5 year product), and replace them with lower lender rates. Yes, it's very frustrating for those in the other queues, but RS may no longer care what retail lenders think as they don't need them going forward. That, and the fact that they get to keep 1.5% of all 5-Year RYIs... helps keep their cashflow limping along until the MetroBank cavalry arrive They would have to move loans from 5 year to APM which they dont seem to do, and right now the frequent liquidity is in 5 year. Without 5 year lenders money right now there would be naff all being returned via RYIs Don't forget RS cant move lenders funds between markets By far the easiest way for RS to influence is move new lending into 5 year, which we seem to have identified is basically all going into APM. If they arent doing that then I cant see that they are going to do more complicated stuff
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chris1200
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Post by chris1200 on Aug 5, 2020 8:05:36 GMT
Agree with robski . The pretty simple explanation is just that no new lending is happening from 5 Year, so all re-investment goes to RYIs. In A/P/M, however, it seems too much new lending is happening for there to be any RYI processing. The point is that it wasn't like this until very recently. This is why I want to ask RS if this is the plan from now on. (And yes, of course, their interest in keeping us happy has just diminished significantly - but it certainly hasn't disappeared).
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Post by Deleted on Aug 5, 2020 8:14:11 GMT
Didn't they pause new lending completely for a while? That would explain why RYIs were high for a period. And yes, there is up to a 4.5% funding advantage to new lending in Access vs 5-Year (3% vs 6% lender rates, and 0% vs 1.5% RYI fees). That is a huge income difference for RateSetter. A risk free 4.5% difference. We lenders take on risk and accept less return than that!! Don't forget, the MetroBank deal could still not happen (regulatory issues, shareholder revolt etc - not likely, but not impossible). So RateSetter have to keep their cashflow going until the deal is sealed and completed. Edit: Yes, its naughty to add 3% to 1.5% since one is annual and the other is up-front. Just done to illustrate the magnitude of the advantage to RS
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Aug 5, 2020 8:25:42 GMT
Agree with robski . The pretty simple explanation is just that no new lending is happening from 5 Year, so all re-investment goes to RYIs. In A/P/M, however, it seems too much new lending is happening for there to be any RYI processing. The point is that it wasn't like this until very recently. This is why I want to ask RS if this is the plan from now on. (And yes, of course, their interest in keeping us happy has just diminished significantly - but it certainly hasn't disappeared). 100% this is likely. Why lend from a market they want to sunset. costly and less liquid.
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chris1200
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Post by chris1200 on Aug 5, 2020 8:26:55 GMT
Didn't they pause new lending completely for a while? That would explain why RYIs were high for a period. And yes, there is up to a 4.5% funding advantage to new lending in Access vs 5-Year (3% vs 6% lender rates, and 0% vs 1.5% RYI fees). That is a huge income difference for RateSetter. A risk free 4.5% difference. We lenders take on risk and accept less return than that!! Don't forget, the MetroBank deal could still not happen (regulatory issues, shareholder revolt etc - not likely, but not impossible). So RateSetter have to keep their cashflow going until the deal is sealed and completed. Edit: Yes, its naughty to add 3% to 1.5% since one is annual and the other is up-front. Just done to illustrate the magnitude of the advantage to RS I mean, they also were just always going to be closing down the 5 Year market, so why would they do any new lending from it? Maybe I'm too generous, but I think a lot of these are more nice perks that come with this situation, than being the driving force of the situation. As has been discussed above, likely the only solution here (if they want to keep up with lots of new lending), is to allow 5 Year re-investors to pick up some A/P/M loans that have been RYI'd. We'll see if that ever happens...
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Post by Deleted on Aug 5, 2020 8:31:03 GMT
Maybe I'm too generous, but I think a lot of these are more nice perks that come with this situation, than being the driving force of the situation. Well these 'perks' didnt materialize out of nowhere - they were exactly why RateSetter mothballed 5-Year and switched to Access-style accounts. A massive funding advantage and a wave of new investors who read the word 'Access' and thought it meant they could retrieve their money easily...
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Aug 5, 2020 8:32:16 GMT
Didn't they pause new lending completely for a while? That would explain why RYIs were high for a period. And yes, there is up to a 4.5% funding advantage to new lending in Access vs 5-Year (3% vs 6% lender rates, and 0% vs 1.5% RYI fees). That is a huge income difference for RateSetter. A risk free 4.5% difference. We lenders take on risk and accept less return than that!! Don't forget, the MetroBank deal could still not happen (regulatory issues, shareholder revolt etc - not likely, but not impossible). So RateSetter have to keep their cashflow going until the deal is sealed and completed. Edit: Yes, its naughty to add 3% to 1.5% since one is annual and the other is up-front. Just done to illustrate the magnitude of the advantage to RS I mean, they also were just always going to be closing down the 5 Year market, so why would they do any new lending from it? Maybe I'm too generous, but I think a lot of these are more nice perks that come with this situation, than being the driving force of the situation. As has been discussed above, likely the only solution here (if they want to keep up with lots of new lending), is to allow 5 Year re-investors to pick up some A/P/M loans that have been RYI'd. We'll see if that ever happens... Sorry Chris but I bet it simply doesn't. 5 year will catch up and be like for like before we know it. we flew through April processing and May is likely to be faster still. then i bet 1 year will trundle through as loans mature
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chris1200
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Post by chris1200 on Aug 5, 2020 8:36:47 GMT
Maybe I'm too generous, but I think a lot of these are more nice perks that come with this situation, than being the driving force of the situation. Well these 'perks' didnt materialize out of nowhere - they were exactly why RateSetter mothballed 5-Year and switched to Access-style accounts. A massive funding advantage and a wave of new investors who read the word 'Access' and thought it meant they could retrieve their money easily... Well of course, but that's a slightly different point - I mean specifically in terms of the RYI queue nightmare currently in existence (which would likely not have been in RS's minds when they moved to close down the 5 Year market...!) and what is motivating the massive bias towards 5 Year RYIs over A/P/M RYIs right now. I'm saying I don't think it's necessarily some dastardly plan for RS to cream off some more funds; it's more an inevitability of previous decisions that have been made, whatever the motivations for those decisions were. Edit: We're getting slightly into chicken vs. egg territory at this point, though!
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Aug 5, 2020 8:44:24 GMT
yes but who is the Fox....
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Post by Deleted on Aug 5, 2020 8:46:37 GMT
Well of course, but that's a slightly different point - I mean specifically in terms of the RYI queue nightmare currently in existence (which would likely not have been in RS's minds when they moved to close down the 5 Year market...!) and what is motivating the massive bias towards 5 Year RYIs over A/P/M RYIs right now. I'm saying I don't think it's necessarily some dastardly plan for RS to cream off some more funds; it's more an inevitability of previous decisions that have been made, whatever the motivations for those decisions was. Edit: We're getting slightly into chicken vs. egg territory at this point, though! Not a 'dastardly' new plan, but certainly part of the plan when deciding the T&Cs of the Access account. Again, those T&Cs were drafted by RateSetter deliberately to give them a pool of cheaper 'locked-in' money. They didn't just spontaneously manifest out of nowhere The current RYI nightmare in Access is simply by design - *ANY* kind of crisis would have lead to this. I am however happy to believe that this was due to hubris and ignorance rather than malice on RateSetters part - too much 'Fin-Tech' hype, and too few people who had experienced a full credit cycle.
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adamb
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Post by adamb on Aug 5, 2020 9:19:28 GMT
Hi all. Apologies, as I may be behind the times here, but looking for advice. Is it possible to stop lending new loans? Each night I am able to withdraw approx £1000 by instant withdraws if smaller amounts,,but see many more thousands lent. Thanks in advance
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robski
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Post by robski on Aug 5, 2020 9:28:18 GMT
Which market
1/5yr, change reinvestment settings to holding account
APM set reinvestment rate to maximum then cancel unwritten loan offers. (You cant send directly to holding)
Are you sure they are new loans in APM, they look like new loans when many are in fact old loans rolling over each month.
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adamb
New Member
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Post by adamb on Aug 5, 2020 9:45:45 GMT
Which market 1/5yr, change reinvestment settings to holding account APM set reinvestment rate to maximum then cancel unwritten loan offers. (You cant send directly to holding) Are you sure they are new loans in APM, they look like new loans when many are in fact old loans rolling over each month. Hi Robski. It’s the access market. Im struggling to find the reinvestment settings- could you guide me. Thank you
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robski
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Post by robski on Aug 5, 2020 10:09:59 GMT
Which market 1/5yr, change reinvestment settings to holding account APM set reinvestment rate to maximum then cancel unwritten loan offers. (You cant send directly to holding) Are you sure they are new loans in APM, they look like new loans when many are in fact old loans rolling over each month. Hi Robski. It’s the access market. Im struggling to find the reinvestment settings- could you guide me. Thank you In the your accoutn area, go down to the section your portfolio Click on access and on the next screen you will see reinvestment settings, and by it an edit button
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