coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Sept 7, 2020 10:44:29 GMT
I don't understand why the 5-year RYI queue is moving quickly while the Access queue is glacial. People who invested for 5 years, and got a higher rate in return for their commitment should surely rank after those who invested in Access and are now getting only 1.5% interest. I do not believe that there is any new money buying 5-year so the funds must be coming from loan repayments which could have been used on the Access queue. Of course it suits RS to get rid of the higher rate investments first. Or am I missing something?(My bold) Maybe. My current average rate on money still invested in Access is 4.3%* and I'm sure there are others whose rates are even higher.
(Rates for my other markets are as follows:-
EveryDay : 5yr - 5.3%*
ISA: 1yr - 5.3%*, 5yr - 5.9%*)
*the above rates are those quoted by RS. Most of us by now know that they have been cut by 50%
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gmd78
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Post by gmd78 on Sept 7, 2020 11:59:59 GMT
Also RS were already trying to get rid of the 'old' markets (not open to new investors etc) so people selling out of these markets suits RS. I don't know what RS is going to do in the medium term say over the next year or so, if they intend to continue lending, but in gradual run off mode, they may want the 'new' accounts to carry on working and discouraging withdrawals keeps them functioning. It's even possible that the RS retail arm may be allowed to continue indefinitely as a separate operation. There will be no new p2p lending after the Metro Bank deal completes. Why do some still not seem prepared to accept that fact?
You and me both, I'll say three Hail Marys and dig out my lucky Irish four leaf clover on that one.
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Greenwood2
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Post by Greenwood2 on Sept 7, 2020 12:21:52 GMT
Also RS were already trying to get rid of the 'old' markets (not open to new investors etc) so people selling out of these markets suits RS. I don't know what RS is going to do in the medium term say over the next year or so, if they intend to continue lending, but in gradual run off mode, they may want the 'new' accounts to carry on working and discouraging withdrawals keeps them functioning. It's even possible that the RS retail arm may be allowed to continue indefinitely as a separate operation. There will be no new p2p lending after the Metro Bank deal completes. Why do some still not seem prepared to accept that fact? I'm perfectly willing to accept that fact. Metro seem to say that clearly or rather they say 'Metro Bank will use its deposit base to fund all new unsecured personal loans', which does leave slight scope for other types of lending. RS are rather less clear and seem to be quibbling about exactly what is going to happen, 'a wind down' or 'a run off' (whatever the difference may be). Apart from new lending RS are also funding new tranches of existing loans, for how long will they continue doing that? Will Metro take that over or would that be too close to the RS loan book? It doesn't sound like Metro are directly interested in these type of loans anyway. Just saying things may drag on for a good while and RS may still need the platform to be functioning, and in a couple of years who knows what may happen.
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Post by Deleted on Sept 7, 2020 13:44:04 GMT
It is beyond plausible, almost a certainty. A/P/M money is cheaper, their T&Cs are more favourable to RateSetter, and 5-year RYIs also pay ratesetter a 1.5% fee. If you had personal loan debt at 5%, and credit card debt at 20%, which would you repay first? And what if, in addition, the credit card paid you a bonus when you repaid them? RateSetter are simply acting like any other rational person would, attempting to reduce their funding costs.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Sept 7, 2020 14:03:04 GMT
There will be no new p2p lending after the Metro Bank deal completes. Why do some still not seem prepared to accept that fact? Well I think that's the element of the deal the regulator will be looking very closely at, or should be and if not... why not?
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Greenwood2
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Post by Greenwood2 on Sept 7, 2020 14:05:36 GMT
I just hope they respect investors during the run down of the retail book when metro finally get stuck in. Well I think that's the element of the deal the regulator will be looking very closely at, or should be and if not... why not? Probably more concerned that borrowers are treated fairly.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 703
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Post by coogaruk on Sept 7, 2020 14:07:08 GMT
There will be no new p2p lending after the Metro Bank deal completes. Why do some still not seem prepared to accept that fact? I'm perfectly willing to accept that fact. Well with respect it doesn't always seem that way to me. You appear to be constantly searching for that elusive 'get-out clause'.
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Greenwood2
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Post by Greenwood2 on Sept 7, 2020 14:40:18 GMT
I'm perfectly willing to accept that fact. Well with respect it doesn't always seem that way to me. You appear to be constantly searching for that elusive 'get-out clause'. I hope I've got that already, my RYI is getting near the front (for most funds anyway).
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aju
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Post by aju on Sept 7, 2020 17:01:19 GMT
Well with respect it doesn't always seem that way to me. You appear to be constantly searching for that elusive 'get-out clause'. I hope I've got that already, my RYI is getting near the front (for most funds anyway). I wish I could say that over at Zopa, sold everything we could but still got quite a bit stuck now in their version of forbearance - DeferredPayments is their status term for it. Our Access will be a good while as yet (4th May for us), the 1Y funds will probably play itself out and the 5Y we have left <£100 is getting there.
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Greenwood2
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Post by Greenwood2 on Sept 7, 2020 18:07:39 GMT
I hope I've got that already, my RYI is getting near the front (for most funds anyway). I wish I could say that over at Zopa, sold everything we could but still got quite a bit stuck now in their version of forbearance - DeferredPayments is their status term for it. Our Access will be a good while as yet (4th May for us), the 1Y funds will probably play itself out and the 5Y we have left <£100 is getting there. Still OK with Zopa so not trying to get out. Unfortunately RS looks like a basket case so no option, although in some ways I'm sad to see them go, mainly in 5 year and until the takeover was willing to tough it out.
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aju
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Post by aju on Sept 7, 2020 18:54:16 GMT
I wish I could say that over at Zopa, sold everything we could but still got quite a bit stuck now in their version of forbearance - DeferredPayments is their status term for it. Our Access will be a good while as yet (4th May for us), the 1Y funds will probably play itself out and the 5Y we have left <£100 is getting there. Still OK with Zopa so not trying to get out. Unfortunately RS looks like a basket case so no option, although in some ways I'm sad to see them go, mainly in 5 year and until the takeover was willing to tough it out. Yeah I agree on the RS position, i'm not concerned so far as the loans pay out naturally, the interest we are getting for the loans left at present are quite a bit above any of the banks even with the 50% hit at the moment. Since we have sold quite a bit out of Zopa we are now suffering monthly with defaults overriding the returns each month by quite a bit but that's not to be unexpected just a bit annoying. We still have a long way to go to be in deficit but our overall return is depleting monthly none the less. As I say even with the depleting return we are way ahead of the banks in the best times.
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Sept 14, 2020 19:46:57 GMT
There will be no new p2p lending after the Metro Bank deal completes. Why do some still not seem prepared to accept that fact? I'm perfectly willing to accept that fact. Metro seem to say that clearly or rather they say 'Metro Bank will use its deposit base to fund all new unsecured personal loans', which does leave slight scope for other types of lending. RS are rather less clear and seem to be quibbling about exactly what is going to happen, 'a wind down' or 'a run off' (whatever the difference may be). Apart from new lending RS are also funding new tranches of existing loans, for how long will they continue doing that? Will Metro take that over or would that be too close to the RS loan book? It doesn't sound like Metro are directly interested in these type of loans anyway. Just saying things may drag on for a good while and RS may still need the platform to be functioning, and in a couple of years who knows what may happen. Seems I might not have been too far wrong! '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.'
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