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Post by RateSetter on Nov 3, 2020 17:12:22 GMT
Good afternoon all. Today we have published an update on the interest reduction, the main content of which is copied below for ease of reference. You can also find the update in the RateSetter Notices section of your account and it is also being sent to all investors this evening in the monthly statements.
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
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Post by beagle on Nov 3, 2020 17:37:54 GMT
finally had the balls to say the obvious. snuck it into the statement - sneaky mind.
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Post by freefalljunkie on Nov 3, 2020 18:22:36 GMT
Yeah, no surprise, but it has been blindingly obvious for weeks that an extension was going to be needed, so why not have the gonads to communicate this earlier?
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adrian77
Member of DD Central
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Post by adrian77 on Nov 3, 2020 19:09:25 GMT
Exactly very sneaky and gonad lacking - an honest update would have started 3 paragraphs of blurb with the salient fact - viz - We are sorry but ...
What the hell has the economic prediction Oxford Economics, got to do with the price of fish... I think the business model was less than sound
and we all predicted this would happen - in fact a lot of us expect a further reduction in 2021 so watch this space.
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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 Nov 3, 2020 19:49:04 GMT
i know they need data to make an informed choice, i know that they can not forecast the future but be clear and just state the obvious.
what i think is sneaky is quite simply to add it to the statement most do not read. not rs fault but if we are parting half the interest for this long be direct and state it to all clearly.
i do think that this is the right move. i rather half interest than capital loss.
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sussexlender
Member of DD Central
Cheat seeking missile
Posts: 550
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Post by sussexlender on Nov 3, 2020 20:03:14 GMT
Entriely agree with beagle.
Better to have capital secure and some interest than lose the lot to a scam such as happened with Lendy.
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Post by overthehill on Nov 3, 2020 20:41:06 GMT
"Interest rates on savings are at near 0%" is a bit of a marketing exaggeration as you can get 1.26% for a 2 year fixed deal and FSCS protection. That rate is only slightly further away from Ratesetter's current rate than it is from 0.
I've no complaints about Ratesetter, same with Growth Street. Not quite exemplary but not far from it, until recently strong rates, no capital losses and all promised interest and bonuses paid out. I don't understand the business side but P2P retail will be worse off without them because it reduces choice and creates a vacuum for rogue companies like those in this forum's winddown list.
Low savings rates is a problem but not as bad as you think when you look at the maths. If you have a 100k fixed rate savings product expiring soon and the best rate you can find is now 1% rather than 2.2%, then you only need to put an extra 20k into P2P to maintain the same income.
100k FSCS @ 2.2% = 2200 = 80k FSCS @ 1% + 20k P2P @ 7% = 2200
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Post by bernythedolt on Nov 4, 2020 10:37:17 GMT
"Dear Mortgage Lender, thank you for my loan but because of Covid I've decided to only pay you 50% of my interest until further notice, and will review this every quarter from now on. After all, you couldn't do any better in a savings account or the stock market, so 50% is ok really".
Must try this and see how far I get.
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Post by p2plender on Nov 5, 2020 1:10:48 GMT
I'd rather have no interest but a faster return of my 100 and odd thousand pounds...
Slow motion or no motion watching the queue in front nonsense..
Of course this wouldn't suit the majority and my circumstances are quite different. Currently enjoying 6.5% on the Plenti platform coupled with fearing a collapse in sterling..
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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 Nov 5, 2020 8:35:08 GMT
I'd rather have no interest but a faster return of my 100 and odd thousand pounds... Slow motion or no motion watching the queue in front nonsense.. Of course this wouldn't suit the majority and my circumstances are quite different. Currently enjoying 6.5% on the Plenti platform coupled with fearing a collapse in sterling.. I would say that the queue is moving faster and faster now though, no?
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sl75
Posts: 2,092
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Post by sl75 on Nov 5, 2020 12:23:42 GMT
I'd rather have no interest but a faster return of my 100 and odd thousand pounds... That's back-to-front... the lower the interest rate, the SLOWER your money would get returned to you, as there'd be even fewer investors re-investing their funds (which is the only way you get your investment back sooner than waiting for the underlying loans to repay).
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tjtl
Posts: 232
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Post by tjtl on Nov 5, 2020 12:38:50 GMT
I'd rather have no interest but a faster return of my 100 and odd thousand pounds... Slow motion or no motion watching the queue in front nonsense.. Of course this wouldn't suit the majority and my circumstances are quite different. Currently enjoying 6.5% on the Plenti platform coupled with fearing a collapse in sterling.. I would say that the queue is moving faster and faster now though, no? I would say that the queue is moving fractionally less glacially slowly than it was. I am reconciled to the temporary interest rate reduction lasting through all of 2021
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rrrupert
Member of DD Central
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Post by rrrupert on Nov 5, 2020 15:48:44 GMT
I noticed that unlike previous months they seem to have omitted the October interest coverage ratio etc. I assume this is because it does not look good. (Last month around 1st October we got the September ratio right on time)
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star dust
Member of DD Central
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Post by star dust on Nov 5, 2020 16:03:47 GMT
I noticed that unlike previous months they seem to have omitted the October interest coverage ratio etc. I assume this is because it does not look good. (Last month around 1st October we got the September ratio right on time) I don't normally take much notice of it, but having just checked a couple of statements it seems it's usually a month in arrears. Last month's statement contained data to the end of August.
This month to the end of September
"Provision Fund
(Latest update: October 2020)
The Provision Fund Interest Coverage Ratio increased by 3 percentage points in September.
| Interest Coverage Ratio | 72%
| | Capital Coverage Ratio | 154% |
"
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rrrupert
Member of DD Central
Posts: 121
Likes: 99
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Post by rrrupert on Nov 5, 2020 16:25:46 GMT
On rechecking I think you are right Star Dust.
PS and thanks for pointing it out for me
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