Peer-to-peer lending sites: MSE guide discussion

masonic

drphila said:

masonic said:

drphila said:

bluenun said:

That is what I thought would happen to the funds too.
I am not sure about any settings but did e-mail Ratesetter with this question, the reply makes me think that there are no settings for me to change.

"I started the Withdrawal process on March 22nd but see it is still pending 5 days later.

My funds are being reinvested which I do not want to happen, can you assist please?"

This was the response I received,
"As your funds are invested in the Access product, capital and interest will always reinvest even if you have requested a sell out. There is not a way you can switch off the reinvestment. Once the funds are released then of course the funds will become available to you. 

Given the context of the wider investments environment and the current circumstances, we have received a spike in requests to release invested money. This has meant that we have not been able to process requests as quickly as usual.

We are continuing to process ‘release investment’ requests as quickly as possible, however, we are unable to guarantee a time-frame as to when your funds will be released. We have taken the decision to reduce new lending so that we are able to focus on delivering for our investors whilst ensuring fair outcomes for our borrowers."

I do find the first paragraph confusing.

Here's the way to have your repayments funnelled into your holding account:

http://www.financialthing.com/ratesetter-review/ 

"Manually set reinvestment rates much higher than the Going Rate to prevent money from being reinvested and then you can cancel the order which would return funds to your Holding Account."

That would be an amazing loophole, but I rather suspect RS has thought of that and closed it while withdrawals are being restricted. No harm in trying though.

No,still works. Cancelled an 8 % request a couple of hours ago and now in holding account.

Ratesetter falsely reports money being in people's holding account when it actually isn't (i.e. money "repaid" from Access, Plus or Max which gets automatically put back on the market).

The real test is whether you can withdraw the funds from cancelled request to your bank account (without waiting 2+ weeks in a queue)?

masonic

bluenun said:

drphila said:

bluenun said:

That is what I thought would happen to the funds too.
I am not sure about any settings but did e-mail Ratesetter with this question, the reply makes me think that there are no settings for me to change.

"I started the Withdrawal process on March 22nd but see it is still pending 5 days later.

My funds are being reinvested which I do not want to happen, can you assist please?"

This was the response I received,
"As your funds are invested in the Access product, capital and interest will always reinvest even if you have requested a sell out. There is not a way you can switch off the reinvestment. Once the funds are released then of course the funds will become available to you. 

Given the context of the wider investments environment and the current circumstances, we have received a spike in requests to release invested money. This has meant that we have not been able to process requests as quickly as usual.

We are continuing to process ‘release investment’ requests as quickly as possible, however, we are unable to guarantee a time-frame as to when your funds will be released. We have taken the decision to reduce new lending so that we are able to focus on delivering for our investors whilst ensuring fair outcomes for our borrowers."

I do find the first paragraph confusing.

Here's the way to have your repayments funnelled into your holding account:

http://www.financialthing.com/ratesetter-review/ 

"Manually set reinvestment rates much higher than the Going Rate to prevent money from being reinvested and then you can cancel the order which would return funds to your Holding Account."

Thank-you for the suggestion.
I had no idea that I was able to change the reinvestment rate, I see you are correct but I am a bit worried about trying that out, mainly because I had a reply to my query from customer services (posted above) and later that day an e-mail explaining that I am in a queue. They may not like it if I try this method.
If I do decide to change the reinvestment rate from 3.2% would I just set it really high like 8% knowing that is unlikely to be taken?
How long were your funds at 8% before you cancelled it?

You're not doing anything wrong by trying this. If you weren't permitted to set your own rate, the option wouldn't exist. As soon as you see that your money is on the market at 8%, you should be able to cancel that order and check if that money is then available for withdrawal.

Nardge

Good afternoon folks,

Well with the 'Business' P2P loans I've pressed all the necessary switches for capital and interest to pool out of investment and into holding accounts, selling the same where possible (Lending Crowd, Zopa Limited, Lending Works, Assetz Capital). With Ratesetter I opted to keep the one-year loans in place. I might value the continued access to the one-year market in future. Growth Street appears to have frozen all, though I'm in a 1-year ISA Bond with them anyhow.

With the 'Property' P2P loans, this is a sector which might be quite unaffected for quite sometime, if perhaps throughout. I imagine the demand for property will never cease. Loanpad are actually having more investors join the fray, CrowdProperty appear on top of their game, Kuflink have all my funds locked up for 5 years (and expensive to sell), two out of three of my Proplend loans are coming to fruition, together with the one loan held in CapitalRise. Octopus Choice on the other hand appear to have been the only Property platform to have taken fright, and have frozen all too.

I like the idea of platforms freezing everything. I prefer maintaining business continuity to total loss of funds.

With Kind Regards

Alexland

Nardge said:

I've pressed all the necessary switches for capital and interest to pool out of investment and into holding accounts, selling the same where possible

Will you withdraw the cash as it becomes available in the holding accounts?

I imagine the demand for property will never cease.

Depends on the location and type of property and even if there is demand the near term market price might be at an unprofitable level for property developers who have expensive P2P loans to service which might limit how long they can hold out for a better price.

Nardge

Alexland said:

Nardge said:

I've pressed all the necessary switches for capital and interest to pool out of investment and into holding accounts, selling the same where possible

Will you withdraw the cash as it becomes available in the holding accounts?

I imagine the demand for property will never cease.

Depends on the location and type of property and even if there is demand the near term market price might be at an unprofitable level for property developers who have expensive P2P loans to service which might limit how long they can hold out for a better price.

Given what's ahead, all that pools into Holding Accounts will be transferred into my Vanguard S&S ISA

Thanks for the heads-up with Property, I'll keep it as it is for now, though with great caution going forward...

With Kind Regards

Alexland

Nardge said:

Given what's ahead, all that pools into Holding Accounts will be transferred into my Vanguard S&S ISA

I wouldn't leave money in a P2P platform long enough to pool :-)

Nardge

Point noted. I'll aim to withdraw every time there's a £100 or so...

Thrugelmir

Nardge said:

With the 'Property' P2P loans, this is a sector which might be quite unaffected for quite sometime, if perhaps throughout. I imagine the demand for property will never cease. Loanpad are actually having more investors join the fray, CrowdProperty appear on top of their game, Kuflink have all my funds locked up for 5 years (and expensive to sell), two out of three of my Proplend loans are coming to fruition, together with the one loan held in CapitalRise. Octopus Choice on the other hand appear to have been the only Property platform to have taken fright, and have frozen all too.

What's the nature of the property investment itself? Will the developer survive? 

masonic

Nardge said:

With the 'Property' P2P loans, this is a sector which might be quite unaffected for quite sometime, if perhaps throughout. I imagine the demand for property will never cease. 

I think you'll find demand for property will be virtually zero for the foreseeable future. That isn't going to do much for the cashflows of the developers with loans secured on their current projects.

keyboardworrier

Interesting email from Assetz Capital, they are now charging lenders a fee of 0.9%!