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Post by Deleted on Dec 4, 2016 14:02:50 GMT
Would sell my 5 year loans to another investor - if a secondary market existed.
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Post by GSV3MIaC on Dec 4, 2016 15:32:23 GMT
And the 'new investor' won't get your 6.7% loans, they'll get whatever the current market rate (probably for rolling) happens to be. 8>.
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Post by Deleted on Dec 4, 2016 16:09:03 GMT
And the 'new investor' won't get your 6.7% loans, they'll get whatever the current market rate (probably for rolling) happens to be. 8>. Add together the sellout fee and the new lower loan rate (currently 4.6%), it looks like RateSetter must be making a good profit whenever the sellout option is used.
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angrysaveruk
Member of DD Central
Back and to the left..
Posts: 1,022
Likes: 649
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Post by angrysaveruk on Dec 5, 2016 0:40:03 GMT
Absolutely, Ratesetters sellout calculation is a ripoff.
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Post by sayyestocress on Dec 5, 2016 13:27:08 GMT
I wonder if it really still averages out to ~0.72%? Is there a case for false advertising here? The number of sellouts would need to be heavily weighted towards the 1 year market for it to be true based on the general consensus on the forum. I guess it could be that low because no one is prepared to sell out the 5 year with the fees so high and if you don't sell out you don't contribute to the statistics...
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am
Posts: 1,495
Likes: 601
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Post by am on Dec 5, 2016 14:35:17 GMT
I wonder if it really still averages out to ~0.72%? Is there a case for false advertising here? The number of sellouts would need to be heavily weighted towards the 1 year market for it to be true based on the general consensus on the forum. I guess it could be that low because no one is prepared to sell out the 5 year with the fees so high and if you don't sell out you don't contribute to the statistics... Partial sellouts use the youngest loan parts, which have lower sellout fees.
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Post by sayyestocress on Dec 5, 2016 15:56:18 GMT
I wonder if it really still averages out to ~0.72%? Is there a case for false advertising here? The number of sellouts would need to be heavily weighted towards the 1 year market for it to be true based on the general consensus on the forum. I guess it could be that low because no one is prepared to sell out the 5 year with the fees so high and if you don't sell out you don't contribute to the statistics... Partial sellouts use the youngest loan parts, which have lower sellout fees. That's true, but 0.72% still feels way too low to me. For example, my youngest 5 year loan is from February this year and is 5.9% For me to sell out an amount of money less than this loan value the fee is roughly 2%. That's a pretty young loan in the grand scheme of 5 year loans. For me the 0.72% value RS publish to represent the average withdrawal fee for the 1 and 5 year markets is misleading at best and down right dishonest at worst.
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Post by ruralres66 on Dec 5, 2016 18:57:12 GMT
I agree!
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jlend
Member of DD Central
Posts: 1,817
Likes: 1,444
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Post by jlend on Dec 5, 2016 22:42:07 GMT
Partial sellouts use the youngest loan parts, which have lower sellout fees. That's true, but 0.72% still feels way too low to me. For example, my youngest 5 year loan is from February this year and is 5.9% For me to sell out an amount of money less than this loan value the fee is roughly 2%. That's a pretty young loan in the grand scheme of 5 year loans. For me the 0.72% value RS publish to represent the average withdrawal fee for the 1 and 5 year markets is misleading at best and down right dishonest at worst. Unless it includes sellout fees from the rolling market that are now zero percent
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Post by sayyestocress on Dec 6, 2016 8:48:24 GMT
That's true, but 0.72% still feels way too low to me. For example, my youngest 5 year loan is from February this year and is 5.9% For me to sell out an amount of money less than this loan value the fee is roughly 2%. That's a pretty young loan in the grand scheme of 5 year loans. For me the 0.72% value RS publish to represent the average withdrawal fee for the 1 and 5 year markets is misleading at best and down right dishonest at worst. Unless it includes sellout fees from the rolling market that are now zero percent Now that would be sneaky! The direct quote from their website is "0.72% Average Sell Out fee for 1 and 5 year markets. No fees for withdrawing from Rolling market". That implies to me that it doesn't include them in the percentage, but then I'm not sure what I can believe in that quote...
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Post by ruralres66 on Dec 6, 2016 9:56:38 GMT
I would suggest that the 2 sentences suggest that sell out from the 1 & 5 year markets is used and is taken by RS within the "average" used ! It just suggests that 1 and 5 year(within the rolling and attracting, a lower rate- (though bizarrely, that is not always the case) - BUT no Sell-Out or assignment fee? They need to be asked about this for clarification. Otherwise we have to keep track by using the Sellout Estimates and second guessing...
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Post by settersam on Dec 6, 2016 17:22:14 GMT
I'm all sold out now but I found this technique helpful: if you have reasonably large contracts, say £5000 then sellout £10. The remaining £4990 will form a new contract with today's date so when this is sold the fee will be a lot less (since new contract is only 1 day old). I hadn't a massive holding but this technique definitely helped - took a week or so to work my way through all my contracts though! The calculation may be different now.
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Post by BrianC on Dec 13, 2016 8:47:10 GMT
Is this the worst 5 year rate yet? Crazy!
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Post by p2plender on Dec 13, 2016 8:58:08 GMT
There's some very generous ratesetter 'experts' out there, that's all I can say. I have account set to return everything to holding account. Seems there are plenty out there happy to take abysmal rates which of course is how a 'market' works...
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Post by Deleted on Dec 13, 2016 10:20:30 GMT
Is this the worst 5 year rate yet? Crazy! This is madness, 2weeks ago exactly I took a 5yr rate of 4.7% (with a referral bonus top-up to come on top) Seems like a bonkers level of fluctuation in such a short period!
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