Lenders population breakdown

Note on Whole Loans.

Of the last 100 loan numbers accepted in the loan book, 72 were first offered as whole loans, four were not bid for, resulting in 68 Whole Loans and 32 Partial Loans. It should be noted that the rates on the platform are a function of loan supply and lender demand. Clearly the loan supply is affected by FC's division into whole and partial and the rates are where they are at present because most loans have been going to the Whole Loan lenders.

Yes. Last January all of the loan requests would have come to the partial platform, and because only a third are currently doing so rates are lower than they would otherwise be. The interest rate for the whole loan lenders is set by rates per band on the partial board (over a period), and so reducing the number of loans going to the partial board actually reduces the rates for the whole loan lenders as well. However the rates seem to be still acceptable to the whole loan lenders. There is obviously a diminution of total loans supply, but the division between whole and partial, which affects interest rates, is decided by FC in an undeclared way.

What are the rates being set by Fraternising Crumpets when whole loans are being offered?

I thoroughly object to having to "make do" with what the privileged few don't fancy. It can only result in overall loan quality being poorer on the open market, and explains why I have withdrawn repayments three times recently because I have struggled to find enough loans offered of good (apparent) quality at a reasonable rate. (They can stuff A+ loans at around 6% from which FC take 1% and there is (they say) 0.6% to be deducted as default risk. 4.4%? Even Zopa (who have ditched Rate Promise and are failing to achieve "projected rate" AGAIN) is beating that on 5yr, and I have refused to touch Zopa for 18 months, too.

As for A+ 3 yr .... the small ones also boil down to 4.4%, a rate almost to be matched by the 3 yr Pensioners Bond (only £10K) from NS&I soon. With the current oil driven low inflation rates probably leaving banks/BSs probably lowering their saver rates (to near zero soon) I might even do that (being an ancient flatulant). The oil can just as quickly go up again, and fast. It depends on whether OPEC wants to carry on giving Putin a thrashing (IMHO).

There is also a lag as whole loan market % rates are moving average rates, so we could have had a situation where achieved rates in the whole loan market exceeded those achieved in the general auction market.

Another factor is the changing nature of participation in the whole loans market with increasing passive (in the sense of not being loan pickers) investors, so the rejection rate may be structurally lower going forward.

Yes that is right, there is a lag down and up, and I am not 100% sure if the whole loan rates are not part of the calculation, ie is it the last n partial loans or the last n loans of any type (not fixed).

I am not sure of the propriety of FC having such control over rates. On the one hand the FC market does need to have some stabilisation, and mechanisms such as MBR and the diversion to whole loans can provide useful limits. But on the other hand I am concerned about the lack of any stated rule or objective. Then again I am not sure that rate setting by auction is scalable, and it is becoming a minority occupation squeezed between whole loan lenders and Autobidders - with property fixed. An open mind but careful watching, I think. If FC try to remove our visibility of the whole loans then alarm bells will ring.