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Post by westonkevRS on Feb 24, 2014 22:04:27 GMT
I think "deceptive" is a bit mean, we've been very open on this forum and have always been transparent, honest and interactive. Especially compared to traditional financial organizations whose advertising I personally would call deceptive.
With regard to automated lending at the Market Rate. This was never impacted by lending rate pre-population. Money re-lent automatically at the Market Rate is calculated once a day when the overnight processing is done - see here on the web page: “The Market Rate is automatically calculated in each market every day. The rate is set at the level of the Lowest Lender Order, after discounting a small percentage of all the offers. This is done to ensure that the Market Rate is not adversely affected by outlying orders. The Lender’s repayment is then submitted to the market as an order. If the order is not matched on that day, it will be updated to the next day’s Market Rate should it be lower”.
Kevin. [/font]
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Post by djia977 on Feb 25, 2014 12:27:35 GMT
Sorry to have appeared 'mean', but well done for removing the pre-population issue so quickly. If only other places were so responsive
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markr
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Post by markr on Mar 26, 2014 15:03:56 GMT
For anyone with funds in their holding accounts, the 5 year market is currently chomping through the 5.8% offers at a fair rate of knots, and 4.8% in the 3 year isn't too shabby either.
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mikeb
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Post by mikeb on Mar 26, 2014 18:25:19 GMT
5.8% all gone, 5.9% being nibbled now.
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Post by p2plender on Mar 26, 2014 19:22:55 GMT
lol I remember the early days of 7% +
I'm very happy with bonds such as my latest (Paragon 6.1/8) for instance. If they fail then I'd have thought much of my p2p lending will have failed before these. Wake me if we see 7% + again, cheers.
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oldgrumpy
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Post by oldgrumpy on Mar 26, 2014 19:43:49 GMT
If I could stick a bit in instantly without paying a fee (as I can with FC, AC, SS) I might do so. I think I've got some payments coming in tomorrow, and I reckon 6.0% is on the cards for Friday.....last time I said that was wrong!!! last time I jumped in, (paying the fee) £2.5K of loans were returned in a couple of days :-(
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mikes1531
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Post by mikes1531 on Mar 27, 2014 4:17:51 GMT
... but has anyone calculated the APR return you'd get due to the compounding. Anyone willing to crunch the number, say assuming you could reinvest at 5.9% every month for full 5-ye term? If the monthly rate is 5.9%/12 (=0.49167%/month) then the AER would be 6.06%. But a lot depends on how the 5.9% is calculated and applied. I don't know how RS do it, but there's another P2P platform that I believe calculates its monthly rates so that the AER would come to 5.9%. (Their monthly rate would be 0.47886%.)
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markr
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Post by markr on Mar 27, 2014 9:48:55 GMT
lol I remember the early days of 7% + I'm very happy with bonds such as my latest (Paragon 6.1/8) for instance. If they fail then I'd have thought much of my p2p lending will have failed before these. Wake me if we see 7% + again, cheers. When I first started lending with RateSetter you could get 8% in the 3 year market. But that ain't going to happen again soon. So if you want to invest in P2P lending through an established platform with the tax advantages of a provision fund, RateSetter's 5.8% is about the best around at the moment. And I'm not sure I'd be happy tying money up in an 8-year bond right now, but each to their own I suppose.
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Post by jackpease on Mar 27, 2014 12:35:44 GMT
Yep i'm with old grumpy, if i could do a fee-less instant transfer i'd be in Merchant bank fees for debit cards are not expensive Jack
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Post by elljay on Mar 27, 2014 18:54:03 GMT
When I first started lending with RateSetter you could get 8% in the 3 year market. I've still got a couple left at 8.5%. Those were the days!
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mikes1531
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Post by mikes1531 on Mar 28, 2014 3:55:44 GMT
Thank you, especially correcting my APR and AER use.... Schoolboy error on my part.. And by year 5, what would be the annualised AER earnt in the final year? If the nominal rate remains at 5.9% then the AER in Year 5 ought to be the same as the Year 1 AER.
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pikestaff
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Post by pikestaff on Mar 28, 2014 7:18:23 GMT
But that would not be the AER. The AER is always calculated on the actual capital including rolled up interest to date. Anything else would be nonsense.
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Post by p2plender on Apr 15, 2014 14:22:14 GMT
C'Mon our lovely lenders.... Seems our borrowers are working at a faster pace than the markets can keep up with. Still, although it isn't 7%, I personally think 5.9% is excellent especially if you reinvest and compound the interest.I recognize that if you reinvest for the full 5 years you would basically still be tied in at that point, but has anyone calculated the APR return you'd get due to the compounding. I should probably know the answer as a RS representative and a personal lender in the 5-yr market, but I've never spent the time to work it out. And I know some of our forum members are good at this stuff. Anyone willing to crunch the number, say assuming you could reinvest at 5.9% every month for full 5-ye term? Kevin. Aghh but it's not 5.9% as RS take 10% of interest earned. I'd forgotten about this.
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Post by p2plender on Apr 15, 2014 17:28:59 GMT
well yes, net of 10% RS cut and then our lovely government cut..
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Post by westonkevRS on Apr 15, 2014 17:31:53 GMT
Correct. There might have been some confusion as there was a 10% lender fee, but this was on top of the lender rates achieved. So the base interest charged to a lender was, for example on a 5.9% lender rate actually 6.5%.
However we have removed / renamed this fee as a service charge. Effectively part of the spread paid by the borrower, so for a lender there is just the single gross/net rate. Currently 5.9% on 5-yr money.
The downside for RateSetter is that we (not that we ever did) cannot advertise a larger gross rate that the lender doesn't actually get. But we'll leave that trick for the others....
Kevin.
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