firedog
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Post by firedog on Jun 22, 2023 15:24:43 GMT
Two rises scheduled over the next six weeks, from 1 August rates will now be:
Classic / ISA Classic 5% Premium / ISA Premium 6%
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Post by Harland Kearney on Jun 22, 2023 15:44:37 GMT
I believe it would sync with ISA. It wouldn't make much sense if it didn't from Loanpads history but have to agree I thought that would be the first comments posted here If we see another Rate Hike I think 6% for ISA might be on the table after July . The July 5.8% rate is very attractive for my portfolio, especially my Limited Company, good work as always Loanpad. Looks like the 6% happened, I'd like to say my crystal ball is not so foggy recently but I think this was obvious to all. I will be keeping significant investment where it is.
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Post by ferpesin on Jun 22, 2023 18:46:51 GMT
Uff, with today's rate increase and banks offering 5.7 for a year fix I don't know if it is happening fast enough...
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mogish
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Post by mogish on Jun 23, 2023 6:40:27 GMT
Uff, with today's rate increase and banks offering 5.7 for a year fix I don't know if it is happening fast enough... 0 Either way I'm happy rates are moving in the right direction now to actually receive a decent return after 12 years of poor returns. Still behind inflation but at least the returns go so way to dampen the decay of capital.
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Post by Ace on Jun 23, 2023 7:09:22 GMT
Two rises scheduled over the next six weeks, from 1 August rates will now be: Classic / ISA Classic 5% Premium / ISA Premium 6% It's worth noting that those are simple interest rates. The annual compound equivalents if interest is reinvested are: Classic 5.12% Premium 6.18% Which are the rates to use when comparing to building society AERs. Those rates can't quite be achieved until they release the upgrade to allow a £0.01 minimum reinvestment, as the current minimum is £10.00. Generally, the higher your balance the closer you will get. EDIT: oops, corrected rates.
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firedog
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Post by firedog on Aug 29, 2023 7:57:53 GMT
Higher rates from today: 5.2% (Classic); 6.2% (60-day)
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ashtondav
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Post by ashtondav on Aug 29, 2023 8:35:49 GMT
Higher rates from today: 5.2% (Classic); 6.2% (60-day) 5% easy access in BS with no risk. I’m out.
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mogish
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Post by mogish on Aug 29, 2023 10:32:29 GMT
Higher rates from today: 5.2% (Classic); 6.2% (60-day) 5% easy access in BS with no risk. I’m out. I'm continuing to invest however I've given 60 days notice on my (larger balance) isa due to similar rates with protection elsewhere.
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rscal
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Post by rscal on Aug 29, 2023 14:34:55 GMT
Higher rates from today: 5.2% (Classic); 6.2% (60-day) 5% easy access in BS with no risk. I’m out. Out of interest, what would be the minimum differential (of p2p above FSCS protected building society type account) you would be comfortable with? Asking for a friend.
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Post by df on Aug 29, 2023 14:58:32 GMT
Higher rates from today: 5.2% (Classic); 6.2% (60-day) 5% easy access in BS with no risk. I’m out. My balance is £0 since 3rd April. It's for exactly the same reason - the rate difference between LP and banks is not worth the risk. Tandem gives me 5% AER for FSCS protected account with 24/7 instant access, not much point in using LP's 5.2% (AER 5.34%) offer. Neither 6.2% (AER 6.4%) is an attractive offering - the money I invest via p2p platforms don't really need 60-day access, although it is good to have this option I'd rather park this money at 6% in FSCS fixed products.
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Post by df on Aug 29, 2023 15:10:52 GMT
5% easy access in BS with no risk. I’m out. Out of interest, what would be the minimum differential (of p2p above FSCS protected building society type account) you would be comfortable with? Asking for a friend. From a relatively safe accounts (I consider LP the safest currently functioning p2p platform) I would be comfortable with the rate at least 25% higher than FSCS protected products.
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Post by Ace on Aug 29, 2023 15:56:04 GMT
5% easy access in BS with no risk. I’m out. Out of interest, what would be the minimum differential (of p2p above FSCS protected building society type account) you would be comfortable with? Asking for a friend. Loanpad's 6.2% for 60 day notice is equivalent to 6.4% AER with reinvestment, and the average notice can be reduced to 30 days with rolling withdrawals. The closest FSCS equivalent I could find with a very quick look was West Brom BS at 5.25% with 60 day notice. I prefer the Loanpad offering. It's undoubtedly at the absolute safest end of p2p offerings. The fact that I don't need to repeatedly move the funds to chase the latest FSCS highest rate is a big factor for me. Over the past 4 years I will have built up a 5+% buffer over the maximum I could have earned by constantly chasing the highest FSCS equivalent. To lose that much capital on LP would take a total write-off of at least 9 average loans. Given that they've never even lost a penny of interest, let alone any capital, that would seem pretty unlikely. Any loan being a complete write-off on LP would be extremely unlikely, so it would need losses on many more than 9 loans to cancel out my 5+% buffer, which grows daily. E.g. it would take at least 18 loans going so badly wrong that selling the security recovered less than 21.5% of their current valuations. And don't forget that those LTVs are based on the actual valuations rather than the predicted future LTGDVs. I'd be looking at a minimum of around 7.5% for the next safest group of platforms, but LP is a special case for me where I'm prepared to accept less, particularly when allowing for its ease of use. Having said all of that, I do think that LP need to keep inching their rates higher to maintain market share in the current environment.
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rscal
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Post by rscal on Aug 29, 2023 16:09:31 GMT
Outstanding reply Ace Excellent points that had not occurred to me.
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dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Aug 30, 2023 12:35:29 GMT
Out of interest, what would be the minimum differential (of p2p above FSCS protected building society type account) you would be comfortable with? Asking for a friend. Loanpad's 6.2% for 60 day notice is equivalent to 6.4% AER with reinvestment, and the average notice can be reduced to 30 days with rolling withdrawals. The closest FSCS equivalent I could find with a very quick look was West Brom BS at 5.25% with 60 day notice. I prefer the Loanpad offering. It's undoubtedly at the absolute safest end of p2p offerings. The fact that I don't need to repeatedly move the funds to chase the latest FSCS highest rate is a big factor for me. Over the past 4 years I will have built up a 5+% buffer over the maximum I could have earned by constantly chasing the highest FSCS equivalent. To lose that much capital on LP would take a total write-off of at least 9 average loans. Given that they've never even lost a penny of interest, let alone any capital, that would seem pretty unlikely. Any loan being a complete write-off on LP would be extremely unlikely, so it would need losses on many more than 9 loans to cancel out my 5+% buffer, which grows daily. E.g. it would take at least 18 loans going so badly wrong that selling the security recovered less than 21.5% of their current valuations. And don't forget that those LTVs are based on the actual valuations rather than the predicted future LTGDVs. I'd be looking at a minimum of around 7.5% for the next safest group of platforms, but LP is a special case for me where I'm prepared to accept less, particularly when allowing for its ease of use. Having said all of that, I do think that LP need to keep inching their rates higher to maintain market share in the current environment. Ns&I 1 year Fixed bond now paying 6.2%.
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Post by Ace on Aug 30, 2023 12:43:40 GMT
Loanpad's 6.2% for 60 day notice is equivalent to 6.4% AER with reinvestment, and the average notice can be reduced to 30 days with rolling withdrawals. The closest FSCS equivalent I could find with a very quick look was West Brom BS at 5.25% with 60 day notice. I prefer the Loanpad offering. It's undoubtedly at the absolute safest end of p2p offerings. The fact that I don't need to repeatedly move the funds to chase the latest FSCS highest rate is a big factor for me. Over the past 4 years I will have built up a 5+% buffer over the maximum I could have earned by constantly chasing the highest FSCS equivalent. To lose that much capital on LP would take a total write-off of at least 9 average loans. Given that they've never even lost a penny of interest, let alone any capital, that would seem pretty unlikely. Any loan being a complete write-off on LP would be extremely unlikely, so it would need losses on many more than 9 loans to cancel out my 5+% buffer, which grows daily. E.g. it would take at least 18 loans going so badly wrong that selling the security recovered less than 21.5% of their current valuations. And don't forget that those LTVs are based on the actual valuations rather than the predicted future LTGDVs. I'd be looking at a minimum of around 7.5% for the next safest group of platforms, but LP is a special case for me where I'm prepared to accept less, particularly when allowing for its ease of use. Having said all of that, I do think that LP need to keep inching their rates higher to maintain market share in the current environment. Ns&I 1 year Fixed bond now paying 6.2%. I don't consider a 1 year bond with no access to be equivalent. It sounds like a good deal, but a different beast.
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