kermie
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Post by kermie on Oct 6, 2016 20:18:29 GMT
If I were being optimistic I would simply say the explicit rates are just for clarity, and perhaps in response to FCA feedback.
<cough>
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ben
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Post by ben on Oct 6, 2016 20:25:38 GMT
I prefer to recieve slightly lower for better secruity, as put before MT has had some good ones recently, FE had one while ago and emoney and LI have some decent ones. So if the loans are a better quality I be happy to accept lower if its the same rubbish for lower rates then no, a lot of loans on SS I would not touch for twice what offered now, although has been a few I would have accepted a lot less.
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Post by wiseclerk on Oct 12, 2016 15:02:27 GMT
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oldgrumpy
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Post by oldgrumpy on Oct 12, 2016 15:32:43 GMT
If they wish to lower the rates on clearly less risky loans, all well and good down to about 10%. What a good opportunity to increase rates on the more cra speculative loans into the 13-18% range.
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Post by easteregg on Oct 12, 2016 15:41:01 GMT
I did raise this with SavingStream and was told that they are considering it. This was also stated publically during one of the afternoon sessions. However I would concur that it is likely.
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Oct 12, 2016 15:49:24 GMT
I guess if they introduce better quality / lower risk loans then maybe... but not for the current offering. MT is a good example with 2 tranches with different LTV/%, first-loss from introducer, or generally low LTV with solid security. Then why not
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Post by wiseclerk on Oct 12, 2016 15:51:16 GMT
Well maybe I misunderstood him when I spoke to him, but I got the impression that they will lower it, with the intention to gain more borrowers they cannot win now.
What they are considering is how to do it (different rates according to loan risks?). I also couldn't get an answer to how much.
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
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Post by Neil_P2PBlog on Oct 12, 2016 16:17:40 GMT
Just confirmed via email, differing rates come 17th October
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Post by Deleted on Oct 12, 2016 16:30:26 GMT
Well atm, theres so much lender demand that even the 'not quite so good' loans are getting hoovered up fast
An increase in borrower supply could, as grumpy says, lead to less lender demand and so higher rates for the 'not quite so good' loans. I suppose we'll find out soon enough.
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stevio
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Post by stevio on Oct 12, 2016 16:38:58 GMT
Just an excuse for them to lower rates so they can compete and get in more business and claim it is a 'better' loan
- knew it wouldn't last !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
No mention of them cutting the rates they charge, just the lenders!
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oldgrumpy
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Post by oldgrumpy on Oct 12, 2016 16:42:29 GMT
So, now we have been told. The wording really "bigs up" SS doesn't it. Much emphasis on the high quality of loans (not to mention borrowers ... what about Mr P *********************)
"...In order to increase the supply of high quality loans, we intend to begin offering investors the chance to invest in lower risk loans that will pay a lower monthly rate. This will allow us to offer lower cost finance to borrowers, which should feedback to a higher volume of even higher quality loan flow..."
I await the future loans with interest (but not quite so much). Mmmm.
Not welcome, but then it does actually make sense and had to come.
Where does that leave FS, with rates up to 17% available if you have a few grand to invest?
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Post by Deleted on Oct 12, 2016 16:45:44 GMT
MT is a good example with 2 tranches with different LTV/%, first-loss from introducer, or generally low LTV with solid security. Then why not Yeah, I'd be up for splits into multiple tranches etc. Let people tweak their desired risk/reward ratio a bit. Hope this isn't just an excuse to blanket cut rates for the 'not quite so good' loans as well. We'll see.
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hendragon
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Post by hendragon on Oct 12, 2016 16:58:44 GMT
It will be interesting to see if this creates a downward trend in rates on other platforms. Hope not  |
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oldgrumpy
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Post by oldgrumpy on Oct 12, 2016 17:00:27 GMT
I bet they try. Expect a tranche of loans at 9% and 11% but not many 12% for a while.
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oldgrumpy
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Post by oldgrumpy on Oct 12, 2016 17:02:25 GMT
It will be interesting to see if this creates a downward trend in rates on other platforms. Hope not I think that is already in progress and this is part of it.
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