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Post by p2plender on Apr 15, 2014 23:40:42 GMT
But the lender isn't getting the advertised rate (currently 5.9% in 5yr market). He's getting 5.9 - 10% - whatever tax he/she pays.
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spockie
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Post by spockie on Apr 16, 2014 0:10:19 GMT
But the lender isn't getting the advertised rate (currently 5.9% in 5yr market). He's getting 5.9 - 10% - whatever tax he/she pays. No, the lender gets 5.9% - whatever tax he/she pays. Ratesetter's fee is paid by the borrower effectively.
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Post by westonkevRS on Apr 16, 2014 5:26:40 GMT
Spokie is right (P2P Lender is wrong), you get the advertised rate, for example 5.9%. You might have to pay tax depending on your circumstances.
There is NO 10% fee on the advertised or matched rate, and never has been. This is why RateSetter renamed what fees within the spread existed, to avoid this confusion.
Previous tax bills might have referenced 10%, but this was against a lender rated boosted by 10%. So we must take some blame for any confusion
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Post by p2plender on Apr 16, 2014 6:39:42 GMT
Confusion on my part then. The monthly repayment page therefore shows your returns pre the 10%.
Personally I'd rather see the total interest summary for each month show what I'm actually going to receive rather than what I will be receiving less 10%.
PS this isn't a whinge/moan, more an observation.
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mikes1531
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Post by mikes1531 on Apr 16, 2014 20:39:01 GMT
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%. And there might be even more confusion caused by "So the base interest charged to a lender was..." -- which should have said 'borrower' rather than 'lender'.
I think. Or is it just me that's confused?
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Post by p2plender on Apr 17, 2014 7:56:47 GMT
Perhaps 'Repayments by month' page could be tweaked and show:
Payment Date Product Num Contracts Amount Capital Interest (less 10%)
or better still why not deduct the 10% and just show the exact figure the lender will be receiving? As already pointed out a few comments above, it's a page only the individual lender sees so why the need to show the interest figure pre 10% RS commission? Just a thought.
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Post by p2plender on Apr 22, 2014 12:10:04 GMT
3yr bond trying to put a bid in to overtake 5yr bond. Come on 5yr get over 6%.
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mikes1531
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Post by mikes1531 on Apr 22, 2014 19:33:29 GMT
1y almost at 4%, 3y north of 5%, 5y looking to test 6%. What is going on? Seems P2P platforms are suffering from a bit too much competition between each other. Are the higher rates are Wellesey dragging rates higher at Ratesetter for example. How Zopa is getting away with offering just 4% on 3y is a mystery. I get the feeling that the competition is causing Zopa a bit of difficulty funding their loans right now. Their funds on offer are down to less than £1.6M -- that's down from more than £7M at the beginning of the month -- and they had one day earlier this month when they disbursed more than £2M. This suggests to me that they have more applications being reviewed at the moment than they have the funds to fill. Since some applications inevitably will be rejected, perhaps that isn't too unusual, but they do seem to be in a position where they could lend more if they had the funds available, so I suspect they are being constrained by their supply of funds.
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spockie
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Post by spockie on Apr 22, 2014 19:41:50 GMT
I have about £25 left in Zopa which I can't do Rapid Return on, so still get their emails. I have received two recently pleading for funds, the latest being today. They talk about funds being lent within an hour.
Strangely enough, I wasn't tempted...
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duck
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Post by duck on Apr 23, 2014 4:22:55 GMT
Yes times (and rates) are good at present at RS. Looking back at my records I have to go back to 31/01/13 to beat my investments yesterday in both 3 & 5 year - for the record on 31/01/13 I managed 5.0% 3 year and 6.1% 5 year.
Don't expect to see 7.6% loans (2012) again soon though!
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Post by p2plender on Apr 23, 2014 6:31:42 GMT
no especially when some of the banksters are pushing 4.8% loans to their customers. 2007 all over again approaching.
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Post by yorkshireman on May 6, 2014 19:22:56 GMT
I invested a modest sum with Burnley Savings & Loans at 5% for 2 years today and could have had the same rate for 1 year. Perhaps not as good as Wellesley’s 18 month offering but it leaves Ratesetter standing and it’s fully secured.
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Post by yorkshireman on May 6, 2014 19:27:10 GMT
I invested a modest sum with Burnley Savings & Loans at 5% for 2 years today and could have had the same rate for 1 year. Perhaps not as good as Wellesley’s 18 month offering but it leaves Ratesetter standing and it’s fully secured.
Perhaps the moral to that is, you get better rates when “city boys” aren’t involved.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on May 6, 2014 19:35:00 GMT
I invested a modest sum with Burnley Savings & Loans at 5% for 2 years today and could have had the same rate for 1 year. Perhaps not as good as Wellesley’s 18 month offering but it leaves Ratesetter standing and it’s fully secured.
Ey up lad - you've strayed over to our side of the border there!
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Post by yorkshireman on May 6, 2014 19:50:09 GMT
I invested a modest sum with Burnley Savings & Loans at 5% for 2 years today and could have had the same rate for 1 year. Perhaps not as good as Wellesley’s 18 month offering but it leaves Ratesetter standing and it’s fully secured.
Ey up lad - you've strayed over to our side of the border there! Nah then lass ah’ve been investing with BS & L virtually since they started as I strongly agree with their ethos and, being a true Tyke, I’ll even deal with Lancastrians if there’s summat in it for me.
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