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Post by df on Sept 12, 2022 21:10:27 GMT
According to some projections BoE could raise interest rates to 3% by the end of this year. If that's true, we might see FSCS's IA offers matching AC's very soon. I recall at some point RS's IA offers were below FSCS's and some investors entertained this, but i think 'under 5% to lenders' era of p2p is over. Kinda agree with whats above.... But got me thinking..... "If they can't, they'd have to declare non-normal market conditions and close the withdrawals window again. And that could well cause the demise of the retail side of AC.".This lock in is the most worrying bit for me, kinda get the first 1, wasn't happy, but kinda get it, was a big world wide unforeseen thing, now moving on to the present day, a recession is not a unforeseen or unprecedented event, we have had them before, several times in my lifetime, so can ac just lock us in because there business model is not working for a while?? what is the criteria that has to be met??? or is it just up to AC to make the decision when they feel like it??.. I guess they can if they think it is an appropriate action to take in order to keep the business going, as they did at lockdown. At least at lockdown time the AA rates were way above what the banks offered. I've got a very little amount left in QAA. It is shrinking because I use it for funding new loans instead of deposits from bank account, but the 6%+ loan flow is very slow (I'm not interested in 5%ers), so I might just withdraw the remaining bit and deposit when needed. Don't like money being locked when I can avoid it, especially at low interest.
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Post by overthehill on Sept 13, 2022 17:32:06 GMT
BREAKING NEWS : Latest loan is 6.7%.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 13, 2022 18:40:37 GMT
BREAKING NEWS : Latest loan is 6.7%. Is it breaking because it's less than the previous one?
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alender
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Post by alender on Sept 13, 2022 19:30:26 GMT
According to some projections BoE could raise interest rates to 3% by the end of this year. If that's true, we might see FSCS's IA offers matching AC's very soon. I recall at some point RS's IA offers were below FSCS's and some investors entertained this, but i think 'under 5% to lenders' era of p2p is over. Kinda agree with whats above.... But got me thinking..... "If they can't, they'd have to declare non-normal market conditions and close the withdrawals window again. And that could well cause the demise of the retail side of AC.".This lock in is the most worrying bit for me, kinda get the first 1, wasn't happy, but kinda get it, was a big world wide unforeseen thing, now moving on to the present day, a recession is not a unforeseen or unprecedented event, we have had them before, several times in my lifetime, so can ac just lock us in because there business model is not working for a while?? what is the criteria that has to be met??? or is it just up to AC to make the decision when they feel like it??.. If base rates reach predicted levels then it is very likely ACs rates will become uncompetitive, given BOEs current very poor ability to predict inflation and always the predictions are much lower than it turned out I think we could be heading for higher than 3% in the not to distant future. I have been saying for a long time inflation will get out of control given most of the latest Government debt is owned by the BOE who prints money to buy it. The new energy cap has moved the increase cost of energy from the consumer to the tax payer, the Government borrowers the money on behalf of the tax payer by creating debt and selling it to BOE, who will print more money. First we will get a some easing on inflation as energy costs are capped then the printed money will cause more inflation along with all the other printed money to cover the UKs deficit and interest on the Inflation linked gilts Gordon Brown created. AC will either have to increase rates or risk having to do another lock in. They will have no choice but to lock in if there are not enough funds to either increase rates or to cover withdrawals, otherwise where would the money come from. No doubt AC will increase rates to new lenders but there will be all the existing lenders locked into lower rates for some time to come. If there is another lock in how long will it last, if like the last one quite a time as AC will hold onto cash when it can be distributed to savers. From an investors point of view fool me once shame on you, fool me twice shame on me. As I stated before in my posts I have been moving P2P funds (as soon as lock in finished) to REITS with at least some inflation proofing in the rents and of course the properties and to large multi national miners and oil and gas companies. Although some funds have gone to Gas extraction companies in the US and UK as they are producing very good profits most funds are in multi national companies so no one Government can tax them too highly (Holland tried with Shell and they left) and they can move profits from putative tax regimes. I feel a lot less stressed than having these funds in AC not knowing if/when the next lock in is coming and how the loans will perform in the recession that will no doubt come. Also I am not sure there will be many institutional investors will to place funds with AC given the risks and there other safer investments which have reasonable inflation proofing.
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Post by nbk on Sept 14, 2022 15:59:44 GMT
I have just pulled over £32k out from the IA accounts and withdrawn the funds. Not willing to risk a withdrawal lockdown again at uncompetitive rates once BOE raise the base rate again next week. Funds will offset increasing mortgage rate nicely, thank you, and also at zero risk.
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Post by df on Sept 14, 2022 16:52:54 GMT
I have just pulled over £32k out from the IA accounts and withdrawn the funds. Not willing to risk a withdrawal lockdown again at uncompetitive rates once BOE raise the base rate again next week. Funds will offset increasing mortgage rate nicely, thank you, and also at zero risk. Wise decision. In the current climate the projected return is far too low for the risk.
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rscal
Posts: 910
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Post by rscal on Sept 14, 2022 17:11:15 GMT
I have just pulled over £32k out from the IA accounts and withdrawn the funds. Not willing to risk a withdrawal lockdown again at uncompetitive rates once BOE raise the base rate again next week. Funds will offset increasing mortgage rate nicely, thank you, and also at zero risk. Wise decision. In the current climate the projected return is far too low for the risk. As the man from the Pru used to say when he brought around the cheque for your maturing policy: "That's quite a bit of money. Have you considered investing it?" [Mine went into the building society]
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corto
Member of DD Central
one-syllabistic
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Post by corto on Sept 16, 2022 19:56:44 GMT
I have just pulled over £32k out from the IA accounts and withdrawn the funds. Not willing to risk a withdrawal lockdown again at uncompetitive rates once BOE raise the base rate again next week. Funds will offset increasing mortgage rate nicely, thank you, and also at zero risk. Wise decision. In the current climate the projected return is far too low for the risk. What do you guys do with all the money ? There is a chance of massive inflation
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Post by df on Sept 18, 2022 21:17:47 GMT
Wise decision. In the current climate the projected return is far too low for the risk. What do you guys do with all the money ? There is a chance of massive inflation FSCS savings accounts are getting more and more attractive. My tomorrow's scheduled withdrawal from LP will go to Al Rayan's 2.1% instant access. FSCS rates will keep rising at least in near future, in this context the option of 4.3% for 60 days notice product without FSCS protection isn't very attractive.
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Post by davefoz on Sept 22, 2022 4:46:37 GMT
Whilst other companies have gone to the wall AC continues to thrive. I personally think they are arguably the most disingenuous bunch of the lot. The way they have left investors high and dry with dodgy valuations, reinvention of new accounts to get round payments from the under funded provision fund. I wouldn’t invest a penny with this shower. If your new to them beware, thousands thought they were a well managed company when they invested in GBBA 1 then 2. Distributions from liquidated companies, rather than enhanced with payments from the support fund were merely diluted as AC milk each investment with additional fees which were largely the result of its own failings.
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steveb
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Post by steveb on Sept 22, 2022 15:02:45 GMT
Just received an email.
Interest rate increase for the access accounts & the queue for Investors to enter the Access Accounts has been eliminated.
Steve
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Post by Ton ⓉⓞⓃ on Sept 22, 2022 16:42:45 GMT
Just received an email.
Interest rate increase for the access accounts & the queue for Investors to enter the Access Accounts has been eliminated.
Steve
Browser copy of the email
graphic blown up
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trevor
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Post by trevor on Sept 22, 2022 16:51:57 GMT
QAA increase of 0.15% inconsequential compared to recent base rate increases. The 2 yr bond rate has increased by 0.5% in the past couple of weeks.
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rscal
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Post by rscal on Sept 22, 2022 17:12:40 GMT
How long will the percentage increase (in the percentage increase) gimmick last I wonder?
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trevor
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Post by trevor on Sept 22, 2022 18:19:28 GMT
I note that the announcement also says the Access accounts queue has gone. This must raise the possibility of withdrawals being stopped due to non normal market conditions.
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