oldgrumpy
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Post by oldgrumpy on Dec 8, 2014 19:05:24 GMT
Hold tight!! Down we go again!Looks like Wellesley have too much cash coming in so don't want to be too competitive. Barely more than Zopa on offer, and certainly won't attract my money away from RS (let alone other platforms). www.wellesley.co.uk/new-rates/
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hendragon
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Post by hendragon on Dec 8, 2014 19:08:21 GMT
Hold tight!! Down we go again!Looks like Wellesley have too much cash coming in so don't want to be too competitive. Barely more than Zopa on offer, and certainly won't attract my money away from RS (let alone other platforms). www.wellesley.co.uk/new-rates/ not only that but also the end of the 6 and 18 month options........as well as the end of end of any new money invested by myself.
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Post by chielamangus on Dec 8, 2014 19:09:52 GMT
Notification of reduced rates as from Dec 15th. Not attractive at all - similar to Ratesetter - but presumably OK for some, and still incomparably better than the banks.
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star dust
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Post by star dust on Dec 8, 2014 20:10:55 GMT
Cashback being offered to existing customers though, if anyone's interested in getting in before the rate changes. Hardly that generous £50 for £5k, and £100 for £10k, but I guess one per cent is better than nothing  . Too high a starting point and not enough to tempt me though. |
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jcb208
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Post by jcb208 on Dec 8, 2014 20:53:42 GMT
Well don't think I will be investing any more money with them.At those rates proberbly not worth the risk even though they are still a lot better then the bank
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Post by yorkshireman on Dec 8, 2014 20:56:29 GMT
Likewise, I’ll be voting with my feet. AC suddenly looks more attractive apart from doubts about the website.
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Post by mrclondon on Dec 8, 2014 21:55:02 GMT
Given that W&Co are no longer quoting AER rates, here are the (almost identical to AER) XIRR values as from 15th December 14 
Click image when logged in to the forum to view at full size.And for comparison, here are the rates introduced 6 months ago: 
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bugs4me
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Post by bugs4me on Dec 8, 2014 22:33:04 GMT
Given that W&Co are no longer quoting AER rates, here are the (almost identical to AER) XIRR values as from 15th December 14
Click image when logged in to the forum to view at full size.And for comparison, here are the rates introduced 6 months ago: Thanks for the comparison. No longer particularly headline grabbing are they. No doubt they did well with their bond issue (although not for me) so I won't be investing further. Maybe things will change before everything (I hold) matures. Shame but that's how they all seem to go.
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Post by mrclondon on Dec 8, 2014 22:45:47 GMT
No longer particularly headline grabbing are they. No doubt they did well with their bond issue (although not for me) so I won't be investing further. Maybe things will change before everything (I hold) matures. Shame but that's how they all seem to go. Indeed. I haven't invested anything since the previous drop in rates back in June, and certainly won't be touching these new ones. As someone commented earlier, they are now very similiar to RS. But the provision fund at W&Co must be more susceptible to a single loan failing. Its only 12 months since W&Co launched, and personally I think its far too early in the life of the company to price with no risk premium above RS rates.
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bugs4me
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Post by bugs4me on Dec 8, 2014 23:01:01 GMT
No longer particularly headline grabbing are they. No doubt they did well with their bond issue (although not for me) so I won't be investing further. Maybe things will change before everything (I hold) matures. Shame but that's how they all seem to go. Indeed. I haven't invested anything since the previous drop in rates back in June, and certainly won't be touching these new ones. As someone commented earlier, they are now very similiar to RS. But the provision fund at W&Co must be more susceptible to a single loan failing. Its only 12 months since W&Co launched, and personally I think its far too early in the life of the company to price with no risk premium above RS rates. Depending upon the market after the festive break, they could be inferior to the likes of RS. They were good for some passive investor money but that's about it. Now with their IOU bond they won't have to bother with topping up their PF apart from the odd dribble coming in here and there. Once though existing lenders funds mature then they will be able to reduce the PF if folks decide to cash in. Yes it is only 12 months since they launched and they have grown well. But like most P2P's once they achieve velocity then those initial rates do fall.
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Steerpike
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Post by Steerpike on Dec 8, 2014 23:54:37 GMT
Um, I don't like to be the odd one out, but 5k or 10k at the current 1yr rate of 4% plus 1% cashback looks like a good deal to me.
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oldgrumpy
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Post by oldgrumpy on Dec 9, 2014 5:47:23 GMT
The TV advertising must have brought in a lot of new investors. Having just opened accounts and started saving, they will be less than pleased to find the rates for future funds dropping so sharply after just a couple of months. I shall probably park some cash in for one year as steerpike says, then spend the next four years or so withdrawing as existing tranches mature. Thanks for the initial burst, Wellesley.
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markr
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Post by markr on Dec 9, 2014 10:06:19 GMT
Um, I don't like to be the odd one out, but 5k or 10k at the current 1yr rate of 4% plus 1% cashback looks like a good deal to me. The 6 month rate of 3% (p.a.) and still with 1% cashback looks good too. Even better for me because I have £2000 maturing on the 16th from the previous cashback promotion which I'll withdraw. If you haven't topped up for a while and intend to take part in this offer, note that Wellesley have changed their bank details sometime in the last 6 months.
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Post by davee39 on Dec 9, 2014 10:36:05 GMT
I think I can see where this is going. There may be a £10 min investment but small accounts are more costly to administer so they are looking to consolidate some larger accounts. Could still be an attractive diversification for anyone already well invested in RS, otherwise I do not see the point. I had already decided to pull out as my 18 month accounts mature, but mainly to concentrate on RS, Zopa and FC.
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Post by wellesleyco on Dec 9, 2014 11:30:53 GMT
Good Morning all,
Thank you for the feedback on the latest rate reduction. It is understandable that this was never going to be too popular yet it is for good reason that we have done this. First of all, in the absence of FSCS cover, there are different risks on each and every platform and therefore it is not possible to make comparisons about rates offered by other platforms. If you were talking about vanilla savings accounts with government guarantee, then rates are comparable, however with Peer-to-Peer platforms, it is not possible to compare like for like rates and risks.
We have lowered our rates slightly in order to become more competitive in the secured lending market, to become more attractive to the highest quality borrowers. We believe that the preservation of capital while being able to offer favourable rates of return is the goal for our customers. We do not set out to take large risks in order to provide large returns at the risk of lender capital and as we take the first loss, our own capital also. In attracting the highest quality borrowers, we are aiming to lower the risk of lending through Wellesley & Co while still being able to earn a decent rate of interest on your capital.
The assumption that we have raised too much cash as a result of our television advertisement is completely untrue. We are offering a cashback bonus to existing customers in the run up to the rates being lowered which we would not do if we had an excess of cash. We have had a fast-growing first year and aim to continue this growth into 2015.
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. Too high a starting point and not enough to tempt me though.
