ashtondav
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Post by ashtondav on Sept 7, 2019 15:29:46 GMT
I divided my lending capital into 1% chunks neatly 100 loans. Sadly of course I tricked myself into all the artwork and other duplicated borrowers. 50 of the loans are paid up and the other 50? I reckon 20 might pay back something. But I don’t worry as it was 5% of my p2p and that in turn is 10% of my portfolio. Now if FC goes t1ts up, that would be a problem. And there are some very angry boys and girls on that forum trying to sell toxic 2017-2018 loans made under pressure of IPO volumes...
FS - Shocking company and shocking investment.
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ashtondav
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Post by ashtondav on Sept 6, 2019 12:07:28 GMT
I currently have approx 3.5% of my ISA account sitting in cash, it has been there for about a week and the system has only bought one loan part which is a new loan, not from the SM. So it looks like new money isn't being used to buy the toxic older loans, which could be why the selling queue is so long - I guess that FC have decided to let the older loans stay with their current owners. Same in my non ISA account.
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ashtondav
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Post by ashtondav on Sept 5, 2019 16:57:02 GMT
If you can get a decent rate in max, say 6%, and you can set high rates so you get unmatched money which you can withdraw at no cost (now confirmed), I don’t have a problem. The issue will be if I can ever achieve 6% in max without excessive cash drag. I still favour RS over LW because of platform size, but 6.5% vs 5% is a no brainier so very tempting.
in terms of my short term accesss accounts I favour AC and LW. RS Access is pitched too low - it needs to be at least in line with AC, which has the additional protection of asset backing.
I know nothing about Growth Street so open to views.
But Gawd how times have changed. Back in 2008 I could get 6% from the building society. Now I have to risk my capital to get above the inflation rate. And my pals in Germany are only getting 0.5% best on deposit.
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ashtondav
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Post by ashtondav on Sept 5, 2019 15:49:47 GMT
You’ve done a marvellous job over the last 50 pages of convincing people why they shouldn’t buy your loans. Er, and you complain it’s takes a long time to sell your loans.
Perhaps not the best sales strategy.
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ashtondav
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Post by ashtondav on Sept 4, 2019 16:13:46 GMT
Yes, re reading the new T&C “cancelling an order” directs you to “closing your account”. Athough it’s not explicit. So apart from Access you’re going to pay for a withdrawal. 90 days loss of interest is punitive, unfair, and insulting. But this is a massive boost for their shareholders as RS will see at least 1% of the (non access) loanbook drop straight to the bottom line (as there are no additional costs incurred.) This provides a huge boost in earnings visibility - unless no one ever withdraws money.
This new product malarkey may stink like a dead rat but bloody hell its commercially brilliant.
IPO baby, IPO.
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ashtondav
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Post by ashtondav on Sept 3, 2019 16:47:59 GMT
I meant “committed” loosely, in the FC sense of that word; ie “possibly, maybe, if we get a decent head wind and a bit of luck” kinda way. Anyway, even if it is that kind of commitment at least they aren’t stuffing newbies with the 16-18 cohorts, which is of course no consolation for the sellers.
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ashtondav
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Post by ashtondav on Sept 3, 2019 16:37:44 GMT
Maybe the number of rolling investors dwarfs the 5 year squad, so an access account, plus and max are product “no brainers”
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ashtondav
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Post by ashtondav on Sept 3, 2019 16:26:14 GMT
If RS wanted to retire the 1 and 5 year accounts why not just announce it now. Why state you can continue to invest in these legacy products?
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ashtondav
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Post by ashtondav on Sept 3, 2019 14:33:03 GMT
No it says for access, plus, max 1 and 5 year accounts you can change from reinvesting to holding account.https://www.ratesetter.com/siteassets/media/legal/nov-sept-2019/03102019-additional-terms.pdf
anyway you can still cancel unmatched orders and withdraw so you set the rate at going rate plus 5%, so if 5 year rate is 5% set it to 10%, and either get a very good rate or get your hands on your repayments
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ashtondav
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Post by ashtondav on Sept 3, 2019 14:21:09 GMT
New t&c say clearly that for all products you can turn off reinvestment and redirect to holding account. That makes sense, so there is no need to sell to release funds. Can you point me to the clause(s) where it says that please? I've looked and can't see it. Page 1 of additional t&c for 1 year and five year market investors. Can’t do the formattin. In the 1 Year and 5 Year markets, capital and interest received can be reinvested either at Market Rate or at a rate you choose. Your reinvestment options for those products are summarised in the table below: Reinvestment Settings Options Initial investment 1 Year Market Reinvestment product options Access Plus Max 1 Year Market 5 Year Market Option to switch off reinvestment and return funds to holding Yes
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ashtondav
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Post by ashtondav on Sept 3, 2019 14:05:53 GMT
Nah, FC has committed to higher rates for 2019 lenders so they’re rationing the cr@p cohorts you guys are selling so as to not dilute returns for newbies. In one way it’s just like any other financial organisation: they give the best deals to the new customers and treat the existing ones as doggy doo doos. Same old model.
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ashtondav
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Post by ashtondav on Sept 3, 2019 13:37:35 GMT
New t&c say clearly that for all products you can turn off reinvestment and redirect to holding account.
That makes sense, so there is no need to sell to release funds.
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ashtondav
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Post by ashtondav on Sept 3, 2019 13:15:01 GMT
So if I have to sell to get funds out of the five year market will the selling costs remain the same? edit; just seen it’s 90 days interest at going rate so 5%/365*90, for example? So about 1.3% at 5% MR and about 1.5% at 6% going rate? So at 6% I can’t get above 4.5%, so would I not go for access at 4% - or even set a 4.5% rate in access?
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ashtondav
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Post by ashtondav on Sept 3, 2019 12:46:32 GMT
oh hang on “to reinvest in a different product you will first need to release your investment to your holding account”
so you can’t direct repayments on say the 5 year market to your holding account. You have to sell loans to release funds to holding? Correct?
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ashtondav
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Post by ashtondav on Sept 3, 2019 12:43:27 GMT
Is this a big issue? Can’t see the problem.
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