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  • FIRST POST
    • Biggles
    • By Biggles 12th Oct 16, 5:17 PM
    • 6,971Posts
    • 4,409Thanks
    Biggles
    P2P rates now falling
    • #1
    • 12th Oct 16, 5:17 PM
    P2P rates now falling 12th Oct 16 at 5:17 PM
    Saving Stream have just sent out an email saying 'Surging investment demand leads to rate adjustment'

    Saving Stream has been offering amongst the best risk-adjusted-returns in the market to peer-to-peer investors for 4 years.

    In that time, over 11,000 people have invested through Saving Stream and been paid a total of £13m in interest. To achieve that we have arranged £200m of lending, of which £70m has been returned to investors and £130m is still accruing interest. We lent over £25m in September alone and still did not satisfy the demand of our investors.

    But despite that success we are always looking to improve our service based on customer feedback. One of the things investors say to us is that they want us to offer a greater number and variety of loans, giving investors more choice and more opportunities to put their money to work.

    As you can see from the graph above, the requested amount for loans significantly outweighs the allocated amount that investors are receiving. We now want to bring demand and supply closer together, as fairly as possible.

    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.

    During September alone there was an opportunity to lend at least another £25m but because our funds were too expensive we did not win the business. A higher volume of loan flow will also mean that investors are more likely to achieve their preferred allocation on the loan rather than being scaled back, which we know can sometimes be frustrating.

    By investing in a wider spread of high quality loans and being able to keep their money at work more of the time, investors will find it far easier to build a sensible diversified portfolio of loans over time and probably for a similar net return as before.

    We intend to start implementing this new policy from Monday 17th of October on all new pipeline loans. Please ensure your default prefunding level is set accordingly, to take into account that not all new loans will be offered at 12%.
Page 1
    • Rollinghome
    • By Rollinghome 12th Oct 16, 5:29 PM
    • 2,037 Posts
    • 2,185 Thanks
    Rollinghome
    • #2
    • 12th Oct 16, 5:29 PM
    • #2
    • 12th Oct 16, 5:29 PM
    With returns falling everywhere likely better than chasing after increasingly riskier loans to maintain the rate.
    • Flobberchops
    • By Flobberchops 12th Oct 16, 5:40 PM
    • 380 Posts
    • 230 Thanks
    Flobberchops
    • #3
    • 12th Oct 16, 5:40 PM
    • #3
    • 12th Oct 16, 5:40 PM
    SS is just one of many platforms. I think we'll have to see how the others choose to act before making blanket statements about P2P in general - for example I use a platform that is still offering up to 20% on some loans.
    • yorkie3
    • By yorkie3 12th Oct 16, 5:50 PM
    • 26 Posts
    • 18 Thanks
    yorkie3
    • #4
    • 12th Oct 16, 5:50 PM
    • #4
    • 12th Oct 16, 5:50 PM
    SS is just one of many platforms. I think we'll have to see how the others choose to act before making blanket statements about P2P in general - for example I use a platform that is still offering up to 20% on some loans.
    Originally posted by Flobberchops
    Which platform is that?
    • bigadaj
    • By bigadaj 12th Oct 16, 8:58 PM
    • 7,855 Posts
    • 4,795 Thanks
    bigadaj
    • #5
    • 12th Oct 16, 8:58 PM
    • #5
    • 12th Oct 16, 8:58 PM
    SS is just one of many platforms. I think we'll have to see how the others choose to act before making blanket statements about P2P in general - for example I use a platform that is still offering up to 20% on some loans.
    Originally posted by Flobberchops
    Yes but they are right in that the deal rate is very slow, which is common amongst the platforms I use.
    • Dan83
    • By Dan83 12th Oct 16, 10:59 PM
    • 635 Posts
    • 256 Thanks
    Dan83
    • #6
    • 12th Oct 16, 10:59 PM
    • #6
    • 12th Oct 16, 10:59 PM
    SS is just one of many platforms. I think we'll have to see how the others choose to act before making blanket statements about P2P in general - for example I use a platform that is still offering up to 20% on some loans.
    Originally posted by Flobberchops
    I don't know if your familiar with saving stream. Saving stream offered 12% interest on every loan, no matter how risky. On other P2P sites lower risk loans attract a lower interest rate.

    The good thing about SS is there are no fee's, so what you see is what you get.

    Collateral also offer 12% on all loans that I have seen so far.
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