jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Jun 10, 2022 10:16:33 GMT
Wow!! Just received an email from Unbolted saying that in the interests of "simplicity" and to reflect no difference in risk profiles, the current two levels of interest are being harmonised at.............................you guessed it, the lower rate of 0.65% per month. Anyone agree that the timing of this is priceless?
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sjg
Member of DD Central
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Post by sjg on Jun 10, 2022 10:24:13 GMT
Well lets hope the extra money Unbolted will be making can go towards a certain court case  |
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mogish
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Post by mogish on Jun 10, 2022 10:30:16 GMT
Still a decent rate. My personal split on loans was more of a focus on gold due to it being easier to liquidate.
Will be interested to see how things pan out.
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Ace
Member of DD Central
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Post by Ace on Jun 10, 2022 10:59:25 GMT
😭
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Post by overthehill on Jun 10, 2022 11:19:13 GMT
Wow!! Just received an email from Unbolted saying that in the interests of "simplicity" and to reflect no difference in risk profiles, the current two levels of interest are being harmonised at.............................you guessed it, the lower rate of 0.65% per month. Anyone agree that the timing of this is priceless?
"We will also offer a single monthly interest rate of 0.65% across all loans to our investors. This equates to a 8% pa return, compounded semi-annually. We acknowledge that this will mean a small reduction in interest rate earned by lenders, but believe this to be the right step for the business enabling us to invest more in borrower marketing."
What a condescending and 'hope nobody notices or cares' communication, straight out of the government's playbook. Most of my loans are .8% per month so even excluding compounding effects an annual rate drop of 1.8%, this is being framed as a small reduction, lol. Another P2P company where inflows are greater than outflows at present but not necessarily in the future.
I won't be increasing my investment even if I could. Everytime I withdraw cash, it builds up again and I repeat the cycle.
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ukinvestor
Member of DD Central
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Post by ukinvestor on Jun 10, 2022 11:27:13 GMT
Disappointing  but what is the alternative? Everyone else is following the same trend... |
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easynow
Member of DD Central
Popcorn anyone?
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Post by easynow on Jun 10, 2022 11:41:39 GMT
If they cannot guarantee to compound the interest twice yearly, which they cannot, then the actual rate is 7.8%, so the email is somewhat misleading IMO.
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Post by redpete on Jun 10, 2022 12:46:50 GMT
The 'small reduction in interest rate' equates to approx. 14% drop in income across my current profile of loans.
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slush
Member of DD Central
Here to learn. Please be gentle.
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Post by slush on Jun 10, 2022 13:08:16 GMT
Would the last person to leave please switch off the lights.
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Post by df on Jun 10, 2022 13:56:44 GMT
If they cannot guarantee to compound the interest twice yearly, which they cannot, then the actual rate is 7.8%, so the email is somewhat misleading IMO. 7.8% is still a very good offer considering the asset type. There's also an inevitable cash drag..... My XIRR is currently 8.51%. Even if it drops by 1% I'll still be happy to continue investing.
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agent69
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Post by agent69 on Jun 10, 2022 13:57:54 GMT
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Ace
Member of DD Central
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Post by Ace on Jun 10, 2022 14:08:29 GMT
Could probably add a few more options. CP, CR and KF at around 7%, or EM at 5.8% to name a few. I'm happy to take some of each to spread the risk, plus many others.
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trium
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Post by trium on Jun 10, 2022 15:08:04 GMT
I put an ISA transfer in the postbox just minutes before receiving the email. I think I'll set fire to it.
I'm fed up with constantly dwindling returns from p2p platforms, especially while traditional rates including bond yields are rising. Zopa is now paying 2.37% for a 1 year fix against 1.35% 7 months ago - a 75% uplift. Most of my UB loans are at 0.8% so the reduction will have a significant impact. It's not a small reduction - it's -20% on the compound annual rate on the affected loans
I started with Zopa 12 years ago. Been swimmimg against the tide ever since.
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mogish
Member of DD Central
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Post by mogish on Jun 10, 2022 15:14:49 GMT
If the rate reduction is indeed spent on borrowers marketing to allow all my idle funds to be invested then that's a good thing.
I shall watch over the next few months to see if the cash drag reduces.
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jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,642
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Post by jonno on Jun 10, 2022 16:25:04 GMT
If the rate reduction is indeed spent on borrowers marketing to allow all my idle funds to be invested then that's a good thing. I shall watch over the next few months to see if the cash drag reduces. You can say that again
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but what is the alternative? 
