m2btj
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Post by m2btj on Dec 1, 2022 14:32:04 GMT
Thanks very much. Any thoughts about how large or small the amount I discount at one time should be? Would I have to think in terms of tens or hundreds of pounds to have a better chance of being accepted or would a larger sum have as much chance of being successful? Is there a way of seeing how much money is available for investment? Set the amount you want to sell (its better to do in smaller chunks so you can cancel unsold lots if you feel the need to change your discount) then choose the discounting option, increase your discount up in multiples of 0.1% until it shows you availability to sell, thats assuming you are in a hurry. For the record, I sold at 0.6-0.7% discount this morning with no trouble, dont entertain more than 1% unless you are desperate to get your cash. Good advice! Once the panic ended during the last restricted withdrawals period, discounts dropped like a stone. I had been buying at 7% discount initially but within weeks it was anything between 1 & 3%. The discounts eventually dried up. If you don't need to access your cash, sit tight & do not discount it! Once the restricted trading period is over you should again be able to access your cash within one working day.
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Post by Ton ⓉⓞⓃ on Dec 1, 2022 15:09:43 GMT
With withdrawals anyone can check to see what rate they'll be offered then they can cancel and check again later, when you get an offer you like go for it
I've seen times when it's best to try to withdrawal small amounts and other times when it's best to go for a bigger lump sum withdrawal - it depends and how much money is trying to get into AC at the time
The rate you'll be offered will change pretty much from hour to hour and certainly from day to day. AC said, I think, that it's £1 in £1 out. I'm interesting in putting some money in but at the correct rate, but I'm not tempted yet, I don't think the rate is commensurate with the risks. The risks for me putting money in are how long will it be there (unknown), what will inflation and bank rates do in the mean time (unknown), will AC fold (go into Admin.)
Unfortunately there's no way of know how long a "non-normal market" will go on for - but I'd guess this could go on for most of the time we have high inflation; and most the time we have similar AA interest rates compared to bank interest rates - I don't see things changing for awhile yet - I'm guessing a year or 18months
Finally as I understand it you can just leave money on normal withdrawal and it will slowly bleed out with interest repayments and loan repayments overt time
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m2btj
Member of DD Central
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Post by m2btj on Dec 1, 2022 16:25:28 GMT
With withdrawals anyone can check to see what rate they'll be offered then they can cancel and check again later, when you get an offer you like go for it
I've seen times when it's best to try to withdrawal small amounts and other times when it's best to go for a bigger lump sum withdrawal - it depends and how much money is trying to get into AC at the time
The rate you'll be offered will change pretty much from hour to hour and certainly from day to day. AC said, I think, that it's £1 in £1 out. I'm interesting in putting some money in but at the correct rate, but I'm not tempted yet, I don't think the rate is commensurate with the risks. The risks for me putting money in are how long will it be there (unknown), what will inflation and bank rates do in the mean time (unknown), will AC fold (go into Admin.)
Unfortunately there's no way of know how long a "non-normal market" will go on for - but I'd guess this could go on for most of the time we have high inflation; and most the time we have similar AA interest rates compared to bank interest rates - I don't see things changing for awhile yet - I'm guessing a year or 18months
Finally as I understand it you can just leave money on normal withdrawal and it will slowly bleed out with interest repayments and loan repayments overt time
Central bankers in Europe & the US believe that inflation will start to fall sharply by the middle of next year. The Eurozone saw inflation fall from 10.6% in October, to 10% in November. Huw Pill, an economist at the BoE believes that interest rates will be moderated by as early as December, & expects the US to do the same. Andrew Bailey procrastinated for far too long & failed to move UK rates up, resulting in a steep rise over a short period in time. This created a major shock to the UK economy. In contrast, the US Fed moved rates up gradually, over a longer time frame. Bailey had failed at the FCA & will fail again in a BoE job far beyond his limited abilities.
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alender
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Post by alender on Dec 1, 2022 17:15:48 GMT
Central bankers in Europe & the US believe that inflation will start to fall sharply by the middle of next year. The Eurozone saw inflation fall from 10.6% in October, to 10% in November. Huw Pill, an economist at the BoE believes that interest rates will be moderated by as early as December, & expects the US to do the same. Andrew Bailey procrastinated for far too long & failed to move UK rates up, resulting in a steep rise over a short period in time. This created a major shock to the UK economy. In contrast, the US Fed moved rates up gradually, over a longer time frame. Bailey had failed at the FCA & will fail again in a BoE job far beyond his limited abilities. The FED were very slow in raising rates to control inflation but the BOE and the UK government were asleep at the wheel the BOE raised interest rates 2 or 3 times 0.25% less than the FED, this resulted in the UK rates being much lower than the US and it is what caused a run on the £ as funds flowed into the $. Also Andrew out to Lunch Bailey (as he is know in the city) putting the boot into Liz Truss just after the budget caused more loss of confidence, the BOEs main job is to control inflation and should be politically neutral they failed on both counts.
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Post by df on Dec 1, 2022 17:42:29 GMT
With withdrawals anyone can check to see what rate they'll be offered then they can cancel and check again later, when you get an offer you like go for it
I've seen times when it's best to try to withdrawal small amounts and other times when it's best to go for a bigger lump sum withdrawal - it depends and how much money is trying to get into AC at the time
The rate you'll be offered will change pretty much from hour to hour and certainly from day to day. AC said, I think, that it's £1 in £1 out. I'm interesting in putting some money in but at the correct rate, but I'm not tempted yet, I don't think the rate is commensurate with the risks. The risks for me putting money in are how long will it be there (unknown), what will inflation and bank rates do in the mean time (unknown), will AC fold (go into Admin.)
Unfortunately there's no way of know how long a "non-normal market" will go on for - but I'd guess this could go on for most of the time we have high inflation; and most the time we have similar AA interest rates compared to bank interest rates - I don't see things changing for awhile yet - I'm guessing a year or 18months
Finally as I understand it you can just leave money on normal withdrawal and it will slowly bleed out with interest repayments and loan repayments overt time
Atom is offering 4.35% 1 year bond. One will be better off selling QAA holding at -0.45% and locking it in Atom. It even makes sense selling at higher discount whilst fixed rates from banks are still high to avoid the risk and still get a decent return. That was my thought behind selling my QAA. I've sold at average -1.56% and don't regret it.
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lara
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Post by lara on Dec 1, 2022 18:58:56 GMT
These replies are extremely helpful, thank you all very much. I'll start watching the rates. I don't need the money now though so no pressure there at least.
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alender
Member of DD Central
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Post by alender on Dec 1, 2022 19:02:39 GMT
Atom is offering 4.35% 1 year bond. One will be better off selling QAA holding at -0.45% and locking it in Atom. It even makes sense selling at higher discount whilst fixed rates from banks are still high to avoid the risk and still get a decent return. That was my thought behind selling my QAA. I've sold at average -1.56% and don't regret it.
This is a smart move in my opinion, fully protected, guaranteed to get your money back in 1 year and they can't drop the interest rate where with the AAs risk of platform collapse, loans going bad, accounts could easily be in non normal conditions for extended period well over a year, AAs could be cast adrift like all the other ACs automated accounts and interest rate dropped. Although not so useful for a lump sum I am taking out monthly savers at interest rates around 5%, 2 at Lloyds, NatWest and Yorkshire Building Society allowing £1300 to be Invested per month although NatWest drop rate after £1000 in the account. All these accounts allow access and can be stopped so useful if money needed elsewhere or better interest rates. Also NationWide has a current account at 5% for up to £1500 for 1 year.
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trevor
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Post by trevor on Dec 1, 2022 19:36:14 GMT
With withdrawals anyone can check to see what rate they'll be offered then they can cancel and check again later, when you get an offer you like go for it
I've seen times when it's best to try to withdrawal small amounts and other times when it's best to go for a bigger lump sum withdrawal - it depends and how much money is trying to get into AC at the time
The rate you'll be offered will change pretty much from hour to hour and certainly from day to day. AC said, I think, that it's £1 in £1 out. I'm interesting in putting some money in but at the correct rate, but I'm not tempted yet, I don't think the rate is commensurate with the risks. The risks for me putting money in are how long will it be there (unknown), what will inflation and bank rates do in the mean time (unknown), will AC fold (go into Admin.)
Unfortunately there's no way of know how long a "non-normal market" will go on for - but I'd guess this could go on for most of the time we have high inflation; and most the time we have similar AA interest rates compared to bank interest rates - I don't see things changing for awhile yet - I'm guessing a year or 18months
Finally as I understand it you can just leave money on normal withdrawal and it will slowly bleed out with interest repayments and loan repayments overt time
Central bankers in Europe & the US believe that inflation will start to fall sharply by the middle of next year. The Eurozone saw inflation fall from 10.6% in October, to 10% in November. Huw Pill, an economist at the BoE believes that interest rates will be moderated by as early as December, & expects the US to do the same. Andrew Bailey procrastinated for far too long & failed to move UK rates up, resulting in a steep rise over a short period in time. This created a major shock to the UK economy. In contrast, the US Fed moved rates up gradually, over a longer time frame. Bailey had failed at the FCA & will fail again in a BoE job far beyond his limited abilities. 0 Fairly sure BOE interest rate will not decrease in December. Most have a 0.5% increase pencilled in. Also US rates. Inflation is not expected to markedly reduce until the back end of ‘23 and the guvnor has stated inflation must be killed off. So I expect base rate to still be high relative to the rates we have been used to in the 10 years well into ‘23. So I reckon Stuart’s non normal conditions to be in place at least a year from now. By then Stuart should be in the Bentley showroom for a new one.
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Post by df on Dec 1, 2022 20:10:25 GMT
This is a smart move in my opinion, fully protected, guaranteed to get your money back in 1 year and they can't drop the interest rate where with the AAs risk of platform collapse, loans going bad, accounts could easily be in non normal conditions for extended period well over a year, AAs could be cast adrift like all the other ACs automated accounts and interest rate dropped. Although not so useful for a lump sum I am taking out monthly savers at interest rates around 5%, 2 at Lloyds, NatWest and Yorkshire Building Society allowing £1300 to be Invested per month although NatWest drop rate after £1000 in the account. All these accounts allow access and can be stopped so useful if money needed elsewhere or better interest rates. Also NationWide has a current account at 5% for up to £1500 for 1 year. I'm still in the process of getting qualified for YBS 5%, will be able to open it at the end of January if they don't take it off the market. Also Halifax and BoS are offering 4.5% regular savers. And now First Direct beats them all at 7%... Currently I'm paying £1900 into regular savers every month. Every little helps.
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m2btj
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Post by m2btj on Dec 2, 2022 9:29:58 GMT
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rscal
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Post by rscal on Dec 2, 2022 20:17:49 GMT
Scoffing contempt. This is Ratner levels of autism
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Ukmikk
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Post by Ukmikk on Dec 5, 2022 11:09:59 GMT
I may have misunderstood what you're saying, but.. if you have given notice and that completed before the lock-in, then the funds should be in your cash account and can be withdrawn. Cash is not locked in, as it's not invested, is it? I moved the funds from the 30DAA to the QAA once the notice period was complete. Then I dilly dallied over moving the money off the platform altogether. Ah, that's unfortunate. Lucky for me I left mine in cash account and completed a full transfer out about a week before the lock-in. Looks like my relationship with AC is now over.
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bugs4me
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Post by bugs4me on Dec 5, 2022 12:18:59 GMT
I moved the funds from the 30DAA to the QAA once the notice period was complete. Then I dilly dallied over moving the money off the platform altogether. Ah, that's unfortunate. Lucky for me I left mine in cash account and completed a full transfer out about a week before the lock-in. Looks like my relationship with AC is now over. Sounds like a fortunate lucky move. With a smiling SL 'gloating' about fresh institutional investor(s) the 'decent' thing to do would be to replace the *AA accounts and allow folks to withdraw funds. However my suspicious mind tells me those institutions are not willing to loan at the *AA rates being offered to private lenders - so it's a source of cheap money for AC.
Nothing to prove this but just trying to make 2 + 2 = 4. When lenders are permitted to withdraw their hard earned cash then no doubt it will be the end of AC in the eyes of many retail lenders as who's going to put themselves through this lock-in again.
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trevor
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Post by trevor on Dec 5, 2022 14:20:34 GMT
I first invested in AC about. 9 years ago plus or minus a bit, I can’t be bothered to find the exact date. After a few weeks i received a telephone call from them asking me if I was intending to invest more. Fast forward to today, oh how the message has changed.
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p2pfan
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Full-Time Investor
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Post by p2pfan on Dec 5, 2022 14:22:32 GMT
Ah, that's unfortunate. Lucky for me I left mine in cash account and completed a full transfer out about a week before the lock-in. Looks like my relationship with AC is now over. Sounds like a fortunate lucky move. With a smiling SL 'gloating' about fresh institutional investor(s) the 'decent' thing to do would be to replace the *AA accounts and allow folks to withdraw funds. However my suspicious mind tells me those institutions are not willing to loan at the *AA rates being offered to private lenders - so it's a source of cheap money for AC.
Nothing to prove this but just trying to make 2 + 2 = 4. When lenders are permitted to withdraw their hard earned cash then no doubt it will be the end of AC in the eyes of many retail lenders as who's going to put themselves through this lock-in again. You're absolutely right and I make the same calculation as you. On the one had SL is regularly bragging in recent times about the fact that he is awash with institutional money ( see here for example) and, yet, in the next breath, he is wailing that he is desperately short of money to fund new tranches of property developments. I can only but surmise that those institutions are not willing to fund these high risk loans at the miserly interest rates that we retail lenders are being offered. There's a reason the people working at those institutions often earn six if not seven figure salaries and bonuses and most retail P2P lenders probably four or five figures from their lending - because the former know when and where to invest the money they are handling and negotiate favourable terms. They will have fired off emails to SL from their City of London skyscrapers to remind him: "don't loan our money to those third-rate property developers paying 5% interest - leave those for the stupid fools lending from their bedrooms".
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