firedog
Member of DD Central
Posts: 312
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Post by firedog on Sept 19, 2023 7:13:23 GMT
See the latest email from LP on term variation: they are saying that the majority of their loans have been made with adjustable rates (linked to BOE) thus passing on the borrowers the rate-risk we as lenders would otherwise accept. The 'quid pro quo' they are bringing forward is we would receive << 60 days notice of downward rate changes [in spite of being on 60 days notice of withdrawal] Fair play as I can't see any way this really punishes lenders. Then I expect to see also immediate increases with BOE decisions, otherwise I am getting out. I don't want to get trapped like in AC again. Let's see by the end of the week... That's an harsh take – as discussed elsewhere, Loanpad has been much more sensitive to interest rate rises over the last six months, thanks to the more flexible way it is lending to borrowers. That's been welcome. But IMO Loanpad clearly sees a flaw in their T&Cs should interest rates decline: as things stand they'd have to give 60 days' notice of any reduction. This could mean they'd remain exposed to declining, flexible borrower rates. Loanpad would either have their margins squeezed, or have to be more cautious when deciding lender rates, and therefore potentially imposing sharper cuts. Their approach - effectively standardising what they do when interest rates change up or down – seems totally sensible to me.
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Post by jono75 on Sept 19, 2023 9:14:54 GMT
Looks like it only affects Classic accounts, for how long though, I wonder. I think they'll drop the rates at the first sniff of a drop. Might be worth looking at a longer FSCS account now. No, both accounts ... it changes current 60 day on premier & 7 day on Classic to zero but aim for 7 days You're correct, I misread the terms bit. I don't like this, the notice period before at least gave some short term certainty. When is this change in effect? "Endeavouring" for seven days means zero notice effectivly.
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Post by Badly Drawn Stickman on Sept 19, 2023 10:27:20 GMT
No, both accounts ... it changes current 60 day on premier & 7 day on Classic to zero but aim for 7 days You're correct, I misread the terms bit. I don't like this, the notice period before at least gave some short term certainty. When is this change in effect? "Endeavouring" for seven days means zero notice effectivly. I would not have thought the change in itself would be a 'deal breaker' for having funds in Loanpad, they are somewhat unlikely to drop the rate below what they consider to be their competitors. I would think that it is who they consider to be their competitors that is a far better reason. Simply following the food chain would indicate that there is potential for it to become untidy. Untidy in the World of P2P tends to be a long while getting neat again. i know there is a hardcore fan club on the forum and I have no desire to debate or waste time going into its place as an investment. Personally I have withdrawn to well below the level of interest already accrued. I would be perfectly happy to return in more stable times.
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rocky1
Member of DD Central
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Post by rocky1 on Sept 19, 2023 11:07:20 GMT
CP lender rate 10% total borrower rate 10% talk about cutting profit margins.on many loans now there is very little margin at least on the interest side of things.still mike must have a plan.
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djpix99
Member of DD Central
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Post by djpix99 on Sept 20, 2023 10:29:21 GMT
Emailed sent today:
'We are pleased to announce some further interest rate increases coming up on our Premium and ISA Premium accounts, as follows:
From 02 October 2023:
Classic / ISA Classic 5.50% (no change)
Premium / ISA Premium 6.40%
From 16 October 2023:
Classic / ISA Classic 5.50% (no change)
Premium / ISA Premium 6.50%
We continue to monitor rates closely and we will update you further in due course.'
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Post by Ace on Sept 20, 2023 13:18:26 GMT
Emailed sent today: 'We are pleased to announce some further interest rate increases coming up on our Premium and ISA Premium accounts, as follows: From 02 October 2023: Classic / ISA Classic 5.50% (no change) Premium / ISA Premium 6.40% From 16 October 2023: Classic / ISA Classic 5.50% (no change) Premium / ISA Premium 6.50% We continue to monitor rates closely and we will update you further in due course.' AER equivalent rates from 16th Oct will be: Classic: 5.65% Premium: 6.715%
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firedog
Member of DD Central
Posts: 312
Likes: 392
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Post by firedog on Sept 20, 2023 16:44:04 GMT
Inflation-beating (fractionally!) at last!
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Post by df on Sept 20, 2023 20:29:22 GMT
Inflation-beating (fractionally!) at last! Beating today's inflation in 26 days time. Have to see how 6.715% compares to FSCS products on 16th October. The result of tomorrow's meeting should give some idea of the direction in near future (by near future I mean next 6 weeks, things are moving very fast these days).
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Post by df on Sept 21, 2023 20:54:24 GMT
Today's BoE's decision to freeze the rate is probably a good news for LP. I doubt we'll see many increases from FSCS providers in the next 6 weeks.
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Post by Ace on Sept 21, 2023 21:33:02 GMT
Today's BoE's decision to freeze the rate is probably a good news for LP. I doubt we'll see many increases from FSCS providers in the next 6 weeks. I would expect to see a drop in FSCS rates. A rise in BoE rate was widely expected until yesterday's inflation figures were announced. Many will have already priced in the expected rise to keep ahead of the pack. So, I'd expect them to have to row back on that.
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Post by df on Sept 22, 2023 16:28:57 GMT
Today's BoE's decision to freeze the rate is probably a good news for LP. I doubt we'll see many increases from FSCS providers in the next 6 weeks. I would expect to see a drop in FSCS rates. A rise in BoE rate was widely expected until yesterday's inflation figures were announced. Many will have already priced in the expected rise to keep ahead of the pack. So, I'd expect them to have to row back on that. I think the race will be paused. On fixed market - NS&I will close their 6.2% issue soon and nobody will offer anything above 6%. Regular savers - some might still offer new 7%+ products because these are not about direct profit, but gaining or retaining customers. Easy access - nobody will match Santander's 5.2%, but I don't think the providers will start reducing their rates on existing products just yet. That's my thought, I could be wrong. It will be interesting to see the result of 2nd Nov meeting. If there is no BoE increase again and LP can push for another small increase I will probably relocate some of my money back to Premium LP.
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Post by birdie on Jan 2, 2024 9:22:37 GMT
Wasn't sure where to post this but, checking my Loanpad account this morning and I notice my daily interest payment is down by 3p , it normally goes up by 1p every 6/7 days, anyone else notice a difference , am I missing something, should I get on to Loanpad.
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Post by birdie on Jan 2, 2024 9:32:03 GMT
I have just E-mailed Loanpad, I would be interested to know whether it has effected anyone else.
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Post by Ace on Jan 2, 2024 9:34:16 GMT
Wasn't sure where to post this but, checking my Loanpad account this morning and I notice my daily interest payment is down by 3p , it normally goes up by 1p every 6/7 days, anyone else notice a difference , am I missing something, should I get on to Loanpad. Yes, I noticed that mine was down slightly too. I haven't had chance to check yet, but thought that it might be due to this year being a leap year, hence an extra day to spread the interest over.
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Post by birdie on Jan 2, 2024 9:35:47 GMT
Just checked my wife's and that is down also.
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