robski
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Post by robski on Sept 14, 2020 18:01:43 GMT
Trying to work out the implications on 5 year
I think they mean they are literally stopping doing anything to it
But part of me wonders if they have sold this book to metro and are going to sell all our loans
No sign of my email yet
I was 120ish in the queue for my small withdrawl, I almost cancelled it this morning, glad i didnt
The notice seems to give the impression a smaller RS will continue (same branding but with some loans in the background being Metro loans), maybe enough of the loan book exists that its still a going concern without the personal lending
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Sept 14, 2020 18:02:38 GMT
or to put another way (as in non-spin gonads) with no support from Metro Bank If I were a betting man I would put money on the APM interest being reduced in Jan 2021 - as I see it is 50-50 that we get 100% of our monay back before the provisional fund runs out... Happy to be proven wrong! i think until all obligated loans are done (whenver that is) the fund will hold. However, thereafter, it will be a interest cut or simply - capital cut - i suspect somewhere in March
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chris1200
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Post by chris1200 on Sept 14, 2020 18:03:46 GMT
This looks like very good news for those in the RYI queue
Edit: That is, particularly for 1 Year and A/P/M, which should now speed along much more quickly (as, it seems, was already beginning to happen). The naysayers predicting the disabling of re-investment and RYIs were fortunately wrong!
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robski
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Post by robski on Sept 14, 2020 18:09:12 GMT
This looks like very good news for those in the RYI queue apart from the 5 year RYI queue it seems I was right they are just going to abandon 5 year, cancel the que etc on Oct 14th, then its just repays and interest as they come in
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chris1200
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Post by chris1200 on Sept 14, 2020 18:11:15 GMT
This looks like very good news for those in the RYI queue apart from the 5 year RYI queue it seems I was right they are just going to abandon 5 year, cancel the que etc on Oct 14th, then its just repays and interest as they come in Indeed - I almost wrote this, but thought it was too obvious  Having said that, I still wouldn't be surprised if those in the queue before this announcement will still get out of 5 Year in time. Those entering the queue tonight... a different story.
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robski
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Post by robski on Sept 14, 2020 18:15:33 GMT
The queue was about 900 this morning (i keep bouncing chunks of mine to the back) on the last month performance that would clear
However it depends on investor thoughts and attention
Some may prefer to have 5 year loans (max is realistically what now, 3.5 years?) locked in as opposed to 1 year with no repayments
On the attention point I wonder how many will not even read the email from ratesetter, I am convinced a fair proportion of their investors dont
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Sept 14, 2020 18:30:11 GMT
This looks like very good news for those in the RYI queue Edit: That is, particularly for 1 Year and A/P/M, which should now speed along much more quickly (as, it seems, was already beginning to happen). The naysayers predicting the disabling of re-investment and RYIs were fortunately wrong! well the lending is the same to be honest... what will metro be lending the ratesetter was- it was already so reduced that the lending was only obligated
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Post by mouldy on Sept 14, 2020 18:31:34 GMT
This looks like very good news for those in the RYI queue Edit: That is, particularly for 1 Year and A/P/M, which should now speed along much more quickly (as, it seems, was already beginning to happen). The naysayers predicting the disabling of re-investment and RYIs were fortunately wrong! Why do you think the 1 Year and APM queue will progress much faster now?
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chris1200
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Post by chris1200 on Sept 14, 2020 18:33:49 GMT
This looks like very good news for those in the RYI queue Edit: That is, particularly for 1 Year and A/P/M, which should now speed along much more quickly (as, it seems, was already beginning to happen). The naysayers predicting the disabling of re-investment and RYIs were fortunately wrong! well the lending is the same to be honest... what will metro be lending the ratesetter was- it was already so reduced that the lending was only obligated Where is your evidence that RS was only doing obligated lending already? Sounds like nonsense to me given that you could apply for a loan on the website. This announcement = significantly reduced lending + continuing re-investment and RYIs. That's the ideal result for those in the queue [for A/P/M and 1 Year].
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chris1200
Member of DD Central
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Post by chris1200 on Sept 14, 2020 18:35:03 GMT
This looks like very good news for those in the RYI queue Edit: That is, particularly for 1 Year and A/P/M, which should now speed along much more quickly (as, it seems, was already beginning to happen). The naysayers predicting the disabling of re-investment and RYIs were fortunately wrong! Why do you think the 1 Year and APM queue will progress much faster now? Because new lending will be reduced. This seems to have already been happening in the last week - likely RS knew that completion was about to happen in advance of the announcement.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on Sept 14, 2020 18:53:25 GMT
well the lending is the same to be honest... what will metro be lending the ratesetter was- it was already so reduced that the lending was only obligated Where is your evidence that RS was only doing obligated lending already? Sounds like nonsense to me given that you could apply for a loan on the website. This announcement = significantly reduced lending + continuing re-investment and RYIs. That's the ideal result for those in the queue [for A/P/M and 1 Year]. Is it nonsense given that is what almost all their comms say. as well as their new lending being very small by comparison given the tightened credit criteria. just because you can apply for a loan doesn't mean everyone gets one...
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chris1200
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Post by chris1200 on Sept 14, 2020 19:02:16 GMT
Where is your evidence that RS was only doing obligated lending already? Sounds like nonsense to me given that you could apply for a loan on the website. This announcement = significantly reduced lending + continuing re-investment and RYIs. That's the ideal result for those in the queue [for A/P/M and 1 Year]. Is it nonsense given that is what almost all their comms say. as well as their new lending being very small by comparison given the tightened credit criteria. just because you can apply for a loan doesn't mean everyone gets one... No, their CS people tried to placate us by mentioning that they 'had obligations' re lending. They certainly never said that all they were doing was obligated lending, which is pretty different. And obviously not 'everyone' gets a loan. That's not what I said? All that matters is that some people can get them to show that you're talking nonsense. Several users on here have posted lending volume graphs showing that new lending significantly picked up in the last couple of months. I highly doubt RS suddenly had a load of new obligated lending. Rather, they likely increased new lending - which brought A/P/M and 1 Year RYIs to a virtual halt - and this has now reversed, such that RYIs are making good progress again. Even an extra £1m per week going to RYIs rather than being lent out would make a massive difference to queue progress. Regardless, it's pretty indisputable that this is the best result possible for those in the [A/P/M and 1 Year] queue. I don't understand why you're trying to pick a fight over that.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
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Post by beagle on Sept 14, 2020 19:05:16 GMT
Is it nonsense given that is what almost all their comms say. as well as their new lending being very small by comparison given the tightened credit criteria. just because you can apply for a loan doesn't mean everyone gets one... No, their CS people tried to placate us by mentioning that they 'had obligations' re lending. They certainly never said that all they were doing was obligated lending, which is pretty different. And obviously not 'everyone' gets a loan. That's not what I said? All that matters is that some people can get them to show that you're talking nonsense. Several users on here have posted lending volume graphs showing that new lending significantly picked up in the last couple of months. I highly doubt RS suddenly had a load of new obligated lending. Rather, they likely increased new lending - which brought A/P/M and 1 Year RYIs to a virtual halt - and this has now reversed, such that RYIs are making good progress again. Regardless, it's pretty indisputable that this is the best result possible for those in the [A/P/M and 1 Year] queue. I don't understand why you're trying to pick a fight over that. im not picking a fight, I am making a comment on a public forum. My opinion is as valid as your one and the evidence I have is worth no less than that of yours, I interpret in the way I do. No need to be rude.
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tjtl
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Post by tjtl on Sept 14, 2020 19:05:42 GMT
Herewith the full email (just received)
Dear xxxxxx
We are writing to give you notice that from 14 October the 5 Year market will close. From that date, investors will no longer be able to make new investments or reinvestments into the 5 Year market. Existing investments in the 5 Year market will continue to return capital and interest as loans repay in accordance with their schedule.
At the same time, we are announcing that we are restoring access to the 1 Year market to all investors in the 5 Year market. You can make new investments into the 1 Year market or set your 5 Year market repayments to reinvest into the 1 Year market, both in your Everyday account and your ISA account.
The 1 Year market offers a similar Market Rate to the 5 Year market, with a shorter loan term. It has the same Provision Fund protection as all other RateSetter investments.
Investors will be able to reinvest into the Access, Plus, Max and 1 Year products as well as direct repayments to their Holding Account. Please log in and update your reinvestment settings.
Below are the features of our products:
Product Going Rate* Investment release fee Term
Access 3.0% Zero Continuous reinvestment
Plus 3.5% 30 days’ interest Continuous reinvestment
Max 4.0% 90 days’ interest Continuous reinvestment
1 Year Market Rate 4.8% 0.3% 1 Year
*Investor interest rates are reduced by 50% during the temporary Interest Reduction period. Market Rate shown for the 1 Year market is the average annualised rate for August.
Please note that since March the ability for early access has been reduced and we expect this to continue for some time. Early access is dependent on supply and demand in each market, and since March demand has outstripped supply. Given this, we ask that anyone investing new funds or reinvesting from the 5 Year market should only do so if they do not need early access to their funds for the time being.
The 5 Year market’s Release Your Investment functionality will also close on 14 October. From that date, investors will receive payments of capital and interest in line with loan schedules.
All new lending from Access, Plus and Max and the 1 Year product will be to the following RateSetter loan types: secured residential property development finance, asset finance, family finance and giffgaff loans. Investors may be matched to other types of existing loan in the portfolio.
The Provision Fund will continue to apply to all investments as normal, and RateSetter will continue to service the loan portfolio.
Why is RateSetter making this change?
All new unsecured personal loan originations will be funded by Metro Bank in line with their stated strategy to grow in unsecured lending. RateSetter’s other lending commitments, the majority of which is secured residential property development which is not a business area of focus for Metro Bank, will continue to be funded by RateSetter investors.
The 1 Year market is designed to fund property development loans, unlike the 5 Year market (because property loans repay capital and interest at the end of the loan term rather than in monthly instalments). We are therefore restoring access to the 1 Year market to investors in the 5 Year market to improve the supply of funds by allowing more investors to put their money to work in the 1 Year market.
You may update your reinvestment settings from today. Please note that unless you update your 5 Year market reinvestment settings your repayments will go into your Holding Account and will not continue to be invested so if you do want to continue to reinvest please log in to update your reinvestment settings.
Q&A
How much notice do you need to give to close the 5 Year market?
We are giving 30 days’ notice as per 14.3 of the Investor Terms.
I have an investment release request pending. What happens to it?
Investment release requests in the 5 Year market will continue to be processed chronologically until 14 October. Following that date, the investment release functionality will close in the 5 Year market as communicated under 14.3 of the Investor Terms. At that point, all 5 Year investment releases requests will be cancelled and investors will receive payments of capital and interest in line with loan schedules. There is no change to investment release requests in Access, Plus and Max and the 1 Year market.
What happens to money on market that has not been matched?
Money on market and unmatched at 14 October will be returned to your Holding Account.
I have an auto invest instruction in the 5 Year market. What happens to it?
It will be cancelled as of 14 October.
How do I transfer out my ISA out of the 5 Year market?
As ISA transfers out must be in cash, the balance will need to be paid into your Holding Account before it can be transferred out. It is important that an ISA is transferred and not withdrawn to avoid losing the tax-free status. In order to initiate a ISA Transfer Out, you need to contact the ISA Provider where you wish to transfer the ISA to.
Is giffgaff lending unsecured consumer finance? Will Metro Bank fund this when the acquisition is complete?
giffgaff is unsecured point of sale finance, and this type of lending will not be funded by Metro Bank.
Why not allow 1 Year market investors to access the 5 Year market too?
The 5 Year market does not fund property development loans, whereas the 1 Year market is designed for exactly that purpose.
Why not allow Access, Plus and Max investors to access the 1 Year market?
Access, Plus and Max have a different set of investor terms to the 1 Year and 5 Year markets. The 1 Year and 5 Year markets share the same investor terms.
Will I be able to access my funds early in the 1 Year market?
Since March, the ability for early access has been reduced and we expect this to continue for some time. Early access is dependent on supply and demand in each market, and since March demand has outstripped supply. At some point this is expected to reverse with supply outstripping demand which will return liquidity to all products. Given this, we ask that anyone investing new funds or reinvesting into the 1 Year market should do so on the basis that their funds will remain invested for the full 1 year term.
How much property lending are you doing?
You can see the composition of the loan portfolio here. We are continuing to deliver to our existing property finance customers ensuring the developments are completed and then sold, which is in the interests of both borrowers and investors.
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chris1200
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Post by chris1200 on Sept 14, 2020 19:08:19 GMT
No, their CS people tried to placate us by mentioning that they 'had obligations' re lending. They certainly never said that all they were doing was obligated lending, which is pretty different. And obviously not 'everyone' gets a loan. That's not what I said? All that matters is that some people can get them to show that you're talking nonsense. Several users on here have posted lending volume graphs showing that new lending significantly picked up in the last couple of months. I highly doubt RS suddenly had a load of new obligated lending. Rather, they likely increased new lending - which brought A/P/M and 1 Year RYIs to a virtual halt - and this has now reversed, such that RYIs are making good progress again. Regardless, it's pretty indisputable that this is the best result possible for those in the [A/P/M and 1 Year] queue. I don't understand why you're trying to pick a fight over that. im not picking a fight, I am making a comment on a public forum. My opinion is as valid as your one and the evidence I have is worth no less than that of yours, I interpret in the way I do. No need to be rude. Yup, a comment I'm asking you to substantiate - and you're struggling to. Opinions are great; show me some actual evidence that RS was only doing obligated lending (i.e. zero new customer lending) - which was what you claimed - and then your opinion will be 'valid'. We'll see if the queues keep moving nicely for 1 Year and A/P/M. If RS is just doing the same obligated lending it's been doing for a while, we should be moving pretty slowly...
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