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Post by bobthebuilder on Jun 30, 2017 9:12:49 GMT
Sorry folks, but after months of sticking with market rate for reinvestments to avoid depressing the long-term rate of return I've had to conclude that their business model is so flawed (rates being able to move only downwards) that I'll take the cashback as soon as my year is up and withdraw. It makes no sense to wait up to 17 days to get matched on a one month contract so I'll aim for the best short-term return I can using the priority rate and then scarper. Maybe I'll reconsider reverting to market rate if borrowing picks up in a month's time, but I doubt it. I really can't see the point of GS running an expensive promotion to attract new investors if they're going to p**s them off so much that they leave at the earliest opportunity.
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treeman
Member of DD Central
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Post by treeman on Jun 30, 2017 10:19:00 GMT
Sorry folks, but after months of sticking with market rate for reinvestments to avoid depressing the long-term rate of return I've had to conclude that their business model is so flawed (rates being able to move only downwards) that I'll take the cashback as soon as my year is up and withdraw. It makes no sense to wait up to 17 days to get matched on a one month contract so I'll aim for the best short-term return I can using the priority rate and then scarper. Maybe I'll reconsider reverting to market rate if borrowing picks up in a month's time, but I doubt it. I really can't see the point of GS running an expensive promotion to attract new investors if they're going to p**s them off so much that they leave at the earliest opportunity. Unfortunately I have reluctantly drawn exactly the same conclusion .............. I doubt we're alone ............. 
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kaya
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Post by kaya on Jun 30, 2017 10:55:01 GMT
Expect a tempting new model to appear before the year is up, perhaps...
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metoo
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Post by metoo on Jun 30, 2017 11:25:03 GMT
Unfortunately, if a sizeable amount is listed at Priority rate, that queue will take as long as Market rate did.
The model only works well if the demand is almost balanced. They wouldn't want to offer a facility to borrowers and keep them waiting, but keeping lenders waiting will wreck the platform one way or another.
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slush
Member of DD Central
Here to learn. Please be gentle.
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Post by slush on Jul 2, 2017 15:45:06 GMT
Will the last person leaving please switch off the lights.
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Post by nesako on Jul 2, 2017 15:58:13 GMT
Will the last person leaving please switch off the lights. No probs, will do, just found the switch: 
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metoo
Member of DD Central
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Post by metoo on Jul 3, 2017 14:54:22 GMT
Market rate now 6.2%.
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Post by nesako on Jul 3, 2017 15:31:28 GMT
Seems to now drop by 0.1% every month... probably will still stay higher than Assetz 30 day notice account for another year and then there will be no point in having any money here...
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greatmarko
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Post by greatmarko on Jul 3, 2017 19:13:50 GMT
Hmm... that's a bit sneaky (especially considering their main marketing website still indicates 6.3%!)
I joined GS two weeks ago, and immediately placed a Market Rate order at 6.3%. Two weeks later, nothing's been invested, and my order rate has now dropped to 6.2%. Reading the small print, it appears that placing an order at "Market Rate" doesn't actually "fix" that rate on your order, but placing an order at "Priority Rate" does!? I'm becoming less and less impressed with GS by the day!
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Post by p2plender on Jul 4, 2017 5:54:24 GMT
This one is fast becoming the joke platform of 2017. Withdrawing and avoiding at all costs. To think I actually gave them a glowing initial report!
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Post by dan1 on Jul 4, 2017 8:48:23 GMT
GS have come in for quite a bit of criticism of late so I wanted to add my own thoughts.
They currently offer >6% with a provision fund with 30 day notice. This is unparalleled as far as I know (please jump in), perhaps the AC 30DAA at 4.25% is the best comparable? I suspect most of the investors from the forum are also sitting on £100 bonus for their £1k or £2k initial investment. And, if you select priority rate then this is a fire and forget platform.
I stuck with the market rate until about a week ago when it became apparent that cash drag was a bigger hit than 0.1% difference in rate. That's ok though, I'll take the hit given that rates were bound to decline given the inflow from new lenders tempted by the bonus and reduction in rates elsewhere, particularly RS.
I expect GS to address the priority rate issue that can only drive rates down and not up. I'd hope a solution is in by the autumn when the summer lull comes to an end.
Overall I have few complaints. I keep reminding my self that this is >6% + provision fund + 30-day access + £100 bonus.
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Post by jackpease on Jul 4, 2017 9:06:14 GMT
Likewise i feel the criticism is misdirected - the assumption is that Growth Street is 'wrong' to reduce rates suggests it has choice in the matter.
Surely it is just the same as every other platform - not enough borrowers - too many lenders - rates go down. They always said the rate was variable.
Lots of talk about the need to 'get more good quality loans in' all over this board but it seems oxymoron to me that going after better quality loans will involve lower rates. The lengthening wait times at Growth Street is proof positive that it must either cut rates to get more borrowers or ration investment through queuing. Cutting rates is far more transparent than pretending all is well via rationing.
I am feeling the pain of lower rates/long queue times here, and RS, Lendy, Wellesley etc etc. I believe it is a feature of p2p at the moment and criticising individual platforms may detract from the wider issue which is whether a platform is stable, safe and solvent.
Jack P
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Post by p2plender on Jul 5, 2017 5:23:35 GMT
Aghhh the old provision fund comfort blanket..
Let's see if rates go up, my thinking is not as there's lots of RS money looking for a home.
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Post by nesako on Jul 6, 2017 10:24:10 GMT
Aghhh the old provision fund comfort blanket.. Let's see if rates go up, my thinking is not as there's lots of RS money looking for a home. The rates will continue to go down and this is also expected by GS themselves, since they look at it as a way to get some lenders out to balance the demand / supply. Some of the RS money may well end up here. More and more people will be switching to Priority rate (given current Market Rate match times), meaning that at some point, matching even with the Priority rate selected will also start to take longer. More and more people start P2P lending in search of a better place for their money, so flow of lenders will continue to grow until either savings rates improve or there is some sort of P2P lending crash where everyone will start running in panic. Regardless of all of the above, until GS continue to offer rates above AC 30D Notice Account and matching stays within couple of days, this is still one of the best platforms on the market for a complete hands-off approach and it should remain so for around another year or so (assuming no radical changes).
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mary
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Post by mary on Jul 26, 2017 17:37:04 GMT
Priority Rate now 6%, Market Rate 6.1% if anyone is still trying that.
RS is no longer awash with cash, so rates have started to rise, the 1 year went to 4.2% yesterday which is what I achieved with GS last month due to excessive cash drag when I was still trying Market Rate.
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