c88dnf
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Post by c88dnf on Feb 12, 2015 15:15:26 GMT
Ive only been investing here a couple of months but its the craziest Ive seen in that time. Is there a danger that RS will run out of lenders cash? Not much. There's still £5.8M sitting in lenders accounts according to the website. Mind you, that has gone down by around £1.7M since last month.
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justsaying
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Post by justsaying on Feb 12, 2015 15:52:46 GMT
There is around £0.5m on offer on the markets at the moment. Does that mean there is £5m sitting in holding accounts earning zilch?
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bigfoot12
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Post by bigfoot12 on Feb 12, 2015 15:59:05 GMT
There is around £0.5m on offer on the markets at the moment. Does that mean there is £5m sitting in holding accounts earning zilch? I'm not sure. Is the page live, or is it updated daily. If it is the latter perhaps it is higher than it is now. It is less than 2% of money on the system, and it could include people withdrawing money. I had an email a couple of hours ago to remind me I had money earning nothing. I'm still earning nothing because I'm trying to be too greedy.
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oldgrumpy
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Post by oldgrumpy on Feb 12, 2015 16:03:44 GMT
I'm sure RS has a few HNW investors in their armoury to add to the flow in "tight" times. It might excite our rate-buds to anticipate 3 year going 6%+ of 5 year 6.8% + but that is no use to RS if no money is available to lend at rates the borrowers sign up to pay, and all the matches get regurgitated into our holding accounts for another day. I wonder if a few blocks of tens of thousands will appear overnight to dampen down tomorrow's "market rate". In the meantime my 5yr 6.4% offer has all gone, and 6.5% may be nibbled away this evening*. The 6.6% speculative punt? We'll see ... What a pity Lloyds Bank still cannot clear a large cheque I placed on Monday... one of their own cheques signed on behalf of Lloyds Bank Plc. *17:25 GONE! 17:49 Blimey - the 6.6% has nearly all gone and I can't get any more brass in till tomorrow ..
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oldgrumpy
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Post by oldgrumpy on Feb 12, 2015 16:28:52 GMT
One of the reasons RS are now in this situation is that they did a cash back a couple of weeks ago, and a lot of people piled in and have little left this month to take advantage of the higher rates (forecasted accurately by some). So next time RS do a cash back we know what to do. Invest nothing until a fortnight after the cashback surge has ended. Then .... POW!!!!!!!!!!!!!
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Post by Deleted on Feb 12, 2015 16:43:01 GMT
One of the reasons RS are now in this situation is that they did a cash back a couple of weeks ago, and a lot of people piled in and have little left this month to take advantage of the higher rates (forecasted accurately by some). So next time RS do a cash back we know what to do. Invest nothing until a fortnight after the cashback surge has ended. Then .... POW!!!!!!!!!!!!!
old, forecast as you say, but such swing, wow
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pip
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Post by pip on Feb 12, 2015 16:48:24 GMT
Maybe it's because people like me are winding down their positions until the coverage ratio improves...
Also it is pretty clear that the monthly account is a waste of time. A rubbish rate and if things go to the wall you are locked in at your monthly rate until the loan matures, with I assume ratesetter bagging the difference between what the borrower is paying and you are receiving.
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Post by robinshould on Feb 12, 2015 17:12:29 GMT
I suspect that a significant reason for the shortage of lending funds is the recent issue of NS&I pensioner bonds on offer at the moment of 4% over three years completely risk free. If you are over 65 you would want to lend into the 3 year market at at least 2% above that to factor in risk. This will be diverting funds away from Ratesetter ( and all other borrowers ), and given the age profile of ratesetter lenders contains a lot of retired people this is having an effect. Of course the cashback last month has drawn forward lending into January and away from February as well. Another point is that you can put £20K into a santander current account and get 3% risk free and easy access.
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c88dnf
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Post by c88dnf on Feb 12, 2015 17:27:50 GMT
I think it's several of the above suggestions, but I'd add one other factor. In previous years there has been a significant downturn in loans in February after a mad rush in January. So far lending is staying pretty high. So higher than average sales and lower than average deposits and rates go up. Long may it continue!
By the way, yes there really are people with lots of money earning nothing in Holding Accounts, just as there are people in the markets asking rates which will probably never be achieved. The figures on lenders cash not in the markets are updated regularly, possibly even in real time, just like the expected default figure.
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oldgrumpy
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Post by oldgrumpy on Feb 12, 2015 17:32:23 GMT
Aaah! All of a sudden some four want to borrow £100K+ at 6.4% when the 6.5% lender offers are in progress. I wonder if that will very rapidly be matched by a big deposit at 6.4% or less. Two mins later a match has been made at 6.4 despite nothing showing up in the lenders list. edit. Aah! A big chunk has gone from the 6.5% pot. I wonder if someone just dropped their rate .... Get a life Grumps .... T-Time! On to the 6.8% now. I'm not bothering as I can't expect many matches made at such high rates sticking.
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c88dnf
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Post by c88dnf on Feb 12, 2015 17:40:05 GMT
Aaah! All of a sudden some four want to borrow £100K+ at 6.4% when the 6.5% lender offers are in progress. I wonder if that will very rapidly be matched by a big deposit at 6.4% or less. Two mins later a match has been made at 6.4 despite nothing showing up in the lenders list. edit. Aah! A big chunk has gone from the 6.5% pot. I wonder if someone just dropped their rate .... Get a life Grumps .... T-Time! The amount lenders have in their Holding Accounts has also dropped by about £40k since earlier this afternoon....
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agent69
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Post by agent69 on Feb 12, 2015 18:09:59 GMT
Rates currently 6.6% (5yr) and 6.1% (3yr).
I've got some spare cash but what rate will stick (don't want it all returning next week). May be worth going a small amount under the headline rate to increase the chance of the loan being taken up.
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adrianc
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Post by adrianc on Feb 12, 2015 18:10:07 GMT
There is currently £63k on offer on the five year market, and £32k of unmatched borrowers - half at 6.6%.
I've got some sat at £3k in the queue - at 6.8%... and a 6.7% offer matched within seconds (and the loan formed)!
<edit: 6.8% just matched and formed> So talk to me about loans forming but then falling apart?
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spiral
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Post by spiral on Feb 12, 2015 18:22:01 GMT
May be worth going a small amount under the headline rate to increase the chance of the loan being taken up. This will only have a real effect if your rate constitutes a large chunk of the loan. e.g. if you put £1K @6% and a further 9K is matched at 7% in a 10K loan, the overall rate is 6.9% so you accepting 6% has not made a great deal of difference. Now if you had the whole 10K, that's a different matter.
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star dust
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Post by star dust on Feb 12, 2015 18:22:26 GMT
Just put back the money I withdrew when the cash-back arrived and have a series of 6.0%, and 6.1% matches in the 3 year, and some sat in the 5 year Q at 6.8/6.9%. Last June I got some 5 year matches at 6.8% on another temporary peak, and those are still live loans; so I'll take my chance on what sticks and just withdraw anything that doesn't.
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