Steerpike
Member of DD Central
Posts: 1,977 
Likes: 1,687
|
Post by Steerpike on May 31, 2017 16:07:02 GMT
I have been lending at market rate since 5th January and XIRR is currently 6.28% which I am happy with for 30 day money.
|
|
Greenwood2
Member of DD Central
Posts: 4,376
Likes: 2,780
|
Post by Greenwood2 on Jun 9, 2017 6:09:05 GMT
Down by another 0.1% today 6.3% market rate, 6.2% priority rate.
|
|
mary
Member of DD Central
Posts: 698 
Likes: 711
|
Post by mary on Jun 9, 2017 6:32:14 GMT
Down by another 0.1% today 6.3% market rate, 6.2% priority rate. Plus I've been waiting to match for 3 days now, and still not matched, which creates an extra 10% rate reduction, so looks like I'll be lucky to make 5% this month. If this continues I'll be looking elsewhere!
|
|
r00lish67
Member of DD Central
Posts: 2,692
Likes: 4,048
|
Post by r00lish67 on Jun 9, 2017 7:03:29 GMT
Frankly, I don't see how GS can possibly continue with rates where they are. Even with today's rate, that's coming on for double what can achieved at their more experienced/established counterparts. They always needed to do this initially to lure investors, but it must be very expensive to continue to do so.
|
|
mary
Member of DD Central
Posts: 698
Likes: 711
|
Post by mary on Jun 9, 2017 9:18:03 GMT
Frankly, I don't see how GS can possibly continue with rates where they are. Even with today's rate, that's coming on for double what can achieved at their more experienced/established counterparts. They always needed to do this initially to lure investors, but it must be very expensive to continue to do so. I disagree, for lending to SMEs rates to investors are 6-8% on ArchOver. Yes this is for 12-24 months, but they have full FCA and insure the loans and have had zero defaults to date. GS's advantage of 30 days is good, but not sufficient if rates continue to drop and cash drag lowers returns at the same time.
|
|
|
|
Post by p2plender on Jun 9, 2017 10:32:32 GMT
Likewise monitoring here also. Started at 6.5% and pretty much now 6.3% in just a few weeks of account opening. I suppose whilst the likes of RS offer terrible rates, GS will succeed at 6%+
|
|
r00lish67
Member of DD Central
Posts: 2,692
Likes: 4,048
|
Post by r00lish67 on Jun 9, 2017 13:37:40 GMT
Frankly, I don't see how GS can possibly continue with rates where they are. Even with today's rate, that's coming on for double what can achieved at their more experienced/established counterparts. They always needed to do this initially to lure investors, but it must be very expensive to continue to do so. I disagree, for lending to SMEs rates to investors are 6-8% on ArchOver. Yes this is for 12-24 months, but they have full FCA and insure the loans and have had zero defaults to date. GS's advantage of 30 days is good, but not sufficient if rates continue to drop and cash drag lowers returns at the same time. I hadn't really looked at Archover before, but I'd argue it's not directly comparable also because: 1) You have to lend in £1k chunks, which isn't going to be for everybody 2) Past performance is not a guarantee of future performance i.e. there is a risk of defaults with Archover even if they haven't had any to date, so you can't necessarily compare 8% with Archover with GS's provision fund protected 6.3% (not that that is infallible either) and you would have to allow for some of your loans to go bad. 3) Archover appeals to deal with accounts receivable loans, with which i haven't had much experience - not sure whether this makes it better or worse, or just different All that said you have me interested now, so I will have a proper poke around! 
|
|
metoo
Member of DD Central
Posts: 555
Likes: 432
|
Post by metoo on Jun 9, 2017 15:04:26 GMT
The rate will inevitably slide if people use Priority Rate. Presumably that is GS's strategy for gaining the margins they need or want. If everyone used Market Rate, we'd all see better returns longer term, unless GS stepped in to change the rate. Queue jumping brings both of the Rates down for everyone. The queue jumpers will soon get (much) lower returns than they would have received if they just took their place in the queue with everyone else.
|
|
mary
Member of DD Central
Posts: 698
Likes: 711
|
Post by mary on Jun 9, 2017 17:34:49 GMT
I disagree, for lending to SMEs rates to investors are 6-8% on ArchOver. Yes this is for 12-24 months, but they have full FCA and insure the loans and have had zero defaults to date. GS's advantage of 30 days is good, but not sufficient if rates continue to drop and cash drag lowers returns at the same time. I hadn't really looked at Archover before, but I'd argue it's not directly comparable also because: 1) You have to lend in £1k chunks, which isn't going to be for everybody 2) Past performance is not a guarantee of future performance i.e. there is a risk of defaults with Archover even if they haven't had any to date, so you can't necessarily compare 8% with Archover with GS's provision fund protected 6.3% (not that that is infallible either) and you would have to allow for some of your loans to go bad. 3) Archover appeals to deal with accounts receivable loans, with which i haven't had much experience - not sure whether this makes it better or worse, or just different All that said you have me interested now, so I will have a proper poke around! Agreed it's not exactly the same and the £1k minimum is a barrier for some, however their unique proposition is that they Insure many of the loans, although not all. While this is untested (due to zero defaults to date) it is in fact better than a discretionary provision fund as they use a commercial insurance company. Now they have full FCA the loan flow has increased a lot, although they are still one of the smaller platforms.
|
|
|
|
Post by khampson on Jun 9, 2017 19:45:26 GMT
A conversation I had with GS today. (me) Another drop in rates? Why are you allowing this to happen, the only way is down, you know this (GS) Hi Keith We are introducing an option for investors to place orders at 0.1% over market rate in the future. (Me) When because I can't hang around much longer, even that people will just lend at the lowest rate (GS) Hopefully sometime during the summer. Thanks (Me) So how you going to stop the rate dropping short term? (GS) We are not. New borrowers will lead to increased demand. Currently there is a lot of supply on the marketplace. So by end of summer we can be looking at - 0.4% drop, of cause your getting new borrowers as rate is dropping. We still believe a return of around 6% AER for the product and access we offer is competitive. However, I take your point that the only way has been down currently. We hope to be able to combat this with the ability to choose a higher rate, as well as adding transparency around the amount of money on the market. All of these features are elements we are working on. (Me) OK looking at the peer to peer forum you are upsetting lenders, please don't bite the hand that feeds, just think about us lenders (GS) Of course, Keith. We are very much aligning our own interests with those of our lenders. That is why we have built a platform which has been so highly reviewed by the various P2P comparison websites. I completely understand your grievance, but as this is a marketplace there isn't always much we can do. The ability to choose a higher rate has not helped increase the rates of the 30-day rolling Ratesetter market for example. (Me) My biggest fear is that growth street will turn into ratesetter 2..... Don't go there sorry if you think I'm ranting but you have a good product now, people can soon turn on a platform and once that happens you never get a reputation back 8h ago. Seen Write a reply… |
|
jlend
Member of DD Central
Posts: 1,840
Likes: 1,465
|
Post by jlend on Jun 9, 2017 20:08:09 GMT
Down by another 0.1% today 6.3% market rate, 6.2% priority rate. Plus I've been waiting to match for 3 days now, and still not matched, which creates an extra 10% rate reduction, so looks like I'll be lucky to make 5% this month. If this continues I'll be looking elsewhere! I've just taken my unmatched money out. There just isnt enough borrower demand right now by the look of things
|
|
r00lish67
Member of DD Central
Posts: 2,692
Likes: 4,048
|
Post by r00lish67 on Jun 10, 2017 6:31:07 GMT
I don't think there's any more value in complaining to GS about the rates on offer than there is complaining to Ladbrokes about the odds on your favoured horse. As profit making enterprises (ideally) they will both actively prefer rates/odds to be lower if investor demand will support it. What is however reasonable is to have more visibility of the lending queue if they're going to opt for a non-priority rate, as per Ratesetter. It isn't fair on lenders to leave them speculating without any information whatsoever now that demand has heated up somewhat. A P2P market version of the racing post, if I can possibly stretch this analogy any further |
|
mary
Member of DD Central
Posts: 698
Likes: 711
|
Post by mary on Jun 10, 2017 6:41:15 GMT
Plus I've been waiting to match for 3 days now, and still not matched, which creates an extra 10% rate reduction, so looks like I'll be lucky to make 5% this month. If this continues I'll be looking elsewhere! I've just taken my unmatched money out. There just isnt enough borrower demand right now by the look of things 4 days unmatched. Definately not adding any more funds.
|
|
DeafEater
Member of DD Central
Extremely Moderate
Posts: 228
Likes: 304
|
Post by DeafEater on Jun 10, 2017 10:31:28 GMT
I've just taken my unmatched money out. There just isnt enough borrower demand right now by the look of things I think you'll regret that. If you read the terms of cashback offer you'll find that in addition to the minimum deposit, you must keep all capital and earned interest reinvested for a year to qualify for the cashback. I think long term GS probably is going the way of RS but if your initial deposit wasn't much more than the minimum required to qualify for the cashback offer (and you keep reinvesting all sums), the return in the first year will still be good by virtue of the cashback. AFTER the first year when returns won't be boosted by cashback, the prospects do not look rosy.
|
|
kaya
Member of DD Central
Posts: 1,150
Likes: 718
|
Post by kaya on Jun 10, 2017 12:12:35 GMT
Bottom line is, if there are enough lenders willing to lend at 3% - 4% (and RS suggests that there is) then a free market can only go down. So this is looking like a 1 year investment only for those of us who want a greater return for the risk/for the piggy bank.
|
|
