markdirac
Member of DD Central
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Post by markdirac on May 16, 2016 10:07:01 GMT
An interesting development at Rebuilding Society - possibly plagiarising Saving Stream's solution to avoiding having funds tied up earning nothing during an auction and whilst awaiting draw down. Until the end of June Rebuilding Society will pay interest from the day at which a bid is made. The rate of interest paid equals the average across all bids - typically 14% to 19%.
Rebuilding Society pays the interest up to the point of draw down, and then the borrower pays if thereafter (as one would expect). If the loan is cancelled and the funds not drawn down, then no pre-interest is paid.
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SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
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Post by SteveT on May 16, 2016 10:09:02 GMT
Ablrate have also been doing exactly this for yonks (they call it "Instant Returns"), as have MoneyThing.
That said, presumably ReBS will only pay interest on bids that are live at the end of the auction (unlike SS / ABL / MT where all bids are at a fixed rate). You'd be pretty hacked off if you bid early at 20% and, after a couple of weeks of an auction running (or longer if extended) your bid was knocked out in the dying seconds, missing out also on the extra interest!
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Post by harvey on May 16, 2016 10:18:42 GMT
I'm not surprised if I'm honest they have had to do something to get people in. A lot of the rebuilding Society loans have gone bad and defaulted and people have taken the money and only made one repayment and now they've got a thing where they just send you a percentage of the chance of getting your money back. It's about 10% normally and that's because they don't do asset backed loans it's all backed on flimsy personal guarantees. I have to say it's not for me over there from what I found out when I looked into it all.
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Post by betterthanworking on May 16, 2016 10:23:39 GMT
This, and several other recent small changes, are all moves in the right direction. I'm still playing.
I have however, resolved not to land up with any new loan parts that are sub-top-rate, so if my bids are knocked out, I don't rebid. That way, I'm in with a chance on the secondary market when I want to shift them.
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Post by dodgeydave on May 16, 2016 10:26:23 GMT
I would read the forum page about REBS before investing any money.
It looks like not many of the loans are not getting funded. So they need to clutch at straws .
I for one am just collecting my money as it is due and not investing any money .
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Post by ladywhitenap on May 17, 2016 14:15:31 GMT
I would read the forum page about REBS before investing any money. It looks like not many of the loans are not getting funded. So they need to clutch at straws . I for one am just collecting my money as it is due and not investing any money . +1 I've had enough of REBS casual approach to chasing late payers. Everything of mine is up for sale and taking the money and running. LW
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