p2pfan
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Post by p2pfan on Jun 8, 2022 10:44:49 GMT
I note that the next six loans on CrowdProperty are paying:
7.3%
7.3%
6.8%
7.2%
7.1%
7.3%
As we know, CP used to pay a fixed 8% on all loans. Then, to many lenders' disappointment, they started paying c. 7.8% on some loans. They then gradually veered towards an average of 7.5%-7.75%. Now they are plummeting yet further and more and more of them are going closer towards 7%.
I wonder if the salaries of CP staff have also been continually slashed by the same ratios? That would naturally be fair.
CP are generally a very good platform but the ever-decreasing rates are extremely disappointing. Especially considering the fairly common technical and accounting issues we have to suffer and waste our time to chase them up on.
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a0010402
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Post by a0010402 on Jun 8, 2022 12:12:55 GMT
The next four Junior loans on Relendex will average 9%. I know where my money's going to go.
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scooter
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Post by scooter on Jun 8, 2022 13:15:35 GMT
The next four Junior loans on Relendex will average 9%. I know where my money's going to go. What are the senior rates? I'm not with this company but having just looked at the website I already find the terms "Junior" and "Senior" quite triggering! And not the way around I would have expected. Up there with "Chunk" at LW. Just me.....
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agent69
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Post by agent69 on Jun 8, 2022 13:52:01 GMT
The next four Junior loans on Relendex will average 9%. I know where my money's going to go. What are the senior rates? I'm not with this company but having just looked at the website I already find the terms "Junior" and "Senior" quite triggering! And not the way around I would have expected. Up there with "Chunk" at LW. Just me..... I thought junior loans / debt had a lower priority when it comes to repayment.
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a0010402
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Post by a0010402 on Jun 8, 2022 14:08:39 GMT
Relendex's upcoming Senior loans' average rate is under 7% already.
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p2pfan
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Post by p2pfan on Jun 9, 2022 9:43:39 GMT
The interest rate for tomorrow's loan has been slashed further, down to 6.5%, so please ignore the 6.8% above.
At 6.5% this, I believe, is all time record low rate for CP.
It's a mere three-quarters of the fixed 8% p.a. CP used to pay on ALL loans.
It's circa half the actual rate of inflation in this country we will shortly have.
I will certainly not be lending a penny for the chance of such a yield.
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a0010402
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Post by a0010402 on Jun 9, 2022 10:10:00 GMT
FYI, All the recent loans issued at CapitalRise have been offering in excess of 7%.
I'm also not going to add any more money to either LP^ or CP, and to others only over 7%, e.g., PropLend only B tranches.
Hopefully with more people voting with their feet they're going to raise their rates.
^ as for LP I hope next rate rise will take their Premium rate up to 5%. If they raise it by 50bp only I'll not be impressed
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Ace
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Post by Ace on Jun 9, 2022 11:21:06 GMT
I'm as keen as anyone to see the rates to lenders on CP get back to 8% ASAP. However, I think there's a particularly strong case for the lower rate on tomorrow's loan. It's a particularly low LTV and against the same project that's already successfully repaid £1.5m to CP lenders. Also, the rate to CP is at a record low of 8.5%, so back to the original 2% margin, unlike recent loans where the margin has crept up to 3%.
I won't be lending on this one as I'm prepared to accept higher risk for a higher reward, but the rate looks fair to me.
As for CR, I'm being forced to reduce my exposure there as rates seem to be slightly lower than CP recently. Wasn't long ago that average rates on CR were around 9%.
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a0010402
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Post by a0010402 on Jun 13, 2022 13:09:16 GMT
A CP Welsh loan, currently available for SelfSelect and £13,215 short of its target, at a rate of 7.8%.
EDIT: Gone!
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p2pfan
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Post by p2pfan on Jul 23, 2022 12:32:16 GMT
The freefall continues...
... of the next pipelined 12 loans, not a single one is paying over 7.4%!
Got a 6.9% in there, and a couple of 7.0%s.
It appears that soon these rates will be around half the real rate of inflation.
I certainly won't be lending my money through this high risk form of investing at these rates.
Why is that when interest rates are shooting up everywhere else, in terms of with bank account savings or mortgage payments etc., only in P2P-type lending are they collapsing in terms of how much lenders receive?
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ilmoro
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Post by ilmoro on Jul 23, 2022 13:12:33 GMT
The freefall continues... ... of the next pipelined 12 loans, not a single one is paying over 7.4%! Got a 6.9% in there, and a couple of 7.0%s. It appears that soon these rates will be around half the real rate of inflation. I certainly won't be lending my money through this high risk form of investing at these rates. Why is that when interest rates are shooting up everywhere else, in terms of with bank account savings or mortgage payments etc., only in P2P-type lending are they collapsing in terms of how much lenders receive? Couple of reasons ... P2p lenders arent part of the mainstream banking system so no direct impact from rise in bank rates (no money on deposit at BoE) ... lag, I expect these deals have been initiated months ago so the recent rises have yet to feed into rates, competition if they want the deal then have to keep rates reasonable, also dropping into more mainstream market ..., demand currently no major issues filling loans on most platforms.
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Ace
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Post by Ace on Nov 13, 2022 23:56:14 GMT
What seems to me to be a relevant excerpt from today's email from CP:
I presume by "prices" they mean rates to borrowers. If so, it doesn't look like CP will be following the trend amongst other platforms of increasing rates to lenders any time soon.
EDIT: I also notice that they don't even mention "retail capital".
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morris
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Post by morris on Nov 14, 2022 7:00:02 GMT
There is also the fact that you can be waiting up to two years for interest to be paid, compared to LP where interest is paid daily for compounding and boosting returns.
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littleoldlady
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Post by littleoldlady on Nov 14, 2022 8:57:34 GMT
What seems to me to be a relevant excerpt from today's email from CP: I presume by "prices" they mean rates to borrowers. If so, it doesn't look like CP will be following the trend amongst other platforms of increasing rates to lenders any time soon. EDIT: I also notice that they don't even mention "retail capital". Is it possible that they mean no increase in rates on existing loans?
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Ace
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Post by Ace on Nov 14, 2022 9:07:17 GMT
What seems to me to be a relevant excerpt from today's email from CP: I presume by "prices" they mean rates to borrowers. If so, it doesn't look like CP will be following the trend amongst other platforms of increasing rates to lenders any time soon. EDIT: I also notice that they don't even mention "retail capital". Is it possible that they mean no increase in rates on existing loans? That's a fair point. I hadn't considered that interpretation. So far though, they seem to have decreased rates this year. According to their stats page the average contracted rate to lenders has dropped from 7.64% in 2021 to 7.34% this year.
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