CONFIRMED - SS are considering lower interest rates

Sorry, I would have to take this with a pinch of salt and need a definitive confirmation from SS themselves posting here (which unfortunately is very unlikely I know)

Strangely though I got this in response to my query:


Hi Stevio,

I can confirm we are considering offering future loans in flying pigs.

Kind regards,

Customer Services Team

Saving Stream

I'm not sure variable rates would work with a provision fund. If I invest in low risk loans, then I don't want to pay for a PF, that higher risks loans are a lot more likely to use.

Because there was no indication of better quality, and the current set (not to mention toxic tips) are already stretching my credulity even at 12%.

I would be happy with one lower option and one higher so maybe 10%, 12% and 14% depending on LTV and other factors.

I be happy with lower % on better offferings but I bet it be similar offerings on about 9/10% and even worse offerings at 12% then have now.

Support the uk economy by any chance? 

I would much rather have a sound loan with a low LTV and a reliable real-world valuation at 10% than a dodgy looking loan at 12%.

In my opinion in an attempt to boost business and the number of loans, saving stream are putting forward more higher risk loans than they used to and that doesn't appeal to me very much.

You don't need many high risk loans to go bad to destroy the whole thing.

On money thing they have some loans at 10% and I invested in a couple only last week because the security looked good and the LTV was quite low.

It is obvious that different loans have different risk attached to them depending on the circumstances and to me it seems only right that the rates paid to investors should be variable according to that. That way the people who like to gamble on high risk high return stuff can invest in what they want and the people who prefer lower return lower risk Investments are also catered for.

A very good point was made earlier about the provision fund. Clearly a provision fund is more likely to be called upon for high risk loans and I don't see a provision Fund would be appropriate if investors have the choice of selecting high risk high return or lower risk , lower return in the first place.