Ratesetter

masonic

JenniferK said:

Breadcake said:

JenniferK said:

Ratesetter state:
I have checked each of the contracts that you have provided details of and can confirm each of these have been formed to rematch the remaining capital outstanding on your contracts to the original borrower at the original rate. These have not been formed due to repaid capital and interest being reinvested into new loans.
When you receive monthly repayments, the amount repaid by the borrower is reinvested in line with your settings so will be placed on to the market at 8% to be matched to new loans. The remaining capital outstanding is rematched to the original borrower at the original contract rate. This does cause a new contract number to be generated each month every time this happens, however rest assured this is the continuation of your existing contracts not repayments being matched to new loans below your chosen rate.

Hi, yes it has been like this for as long as I can remember.
Let's say someone signed up last month, deposited £5k and this was matched to one, new borrower 'Borrower A' and paid the lender 3% at a length of 5 years - the typical monthly payment will be around £89.84.  After one month (allowing for a borrower who pays on time with no overpayments) the lender should expect to see approx. £4922.66 re-matched to 'Borrower A', and approx. £89.84 repaid. The £4922.66 will stay at the interest rate previously agreed (3% in this example) and the £89.84 will be whatever the lender has set their settings to (in your example 8%).
Only the £89.84 will be visible in the unmatched money.
To get the amount already on loan a withdrawal request should be made. As 'Borrower A' will have bought his car/home improvement/debt reconsolidation/other and RateSetter need someone to take your place as the lender.

Thanks.  I understand that but as for as I can tell the £89.84 is being lent at the going rate - not 8%.

I don't think the money you have had re-lent at the going rate is the £89.84, it's part of the £4922.66.

JenniferK

masonic said:

I don't think the money you have had re-lent at the going rate is the £89.84, it's part of the £4922.66.

In the example quoted by Breadcake the £89.84 was repaid capital that should have been put on the market at 8%.  £4922.66 was the borrower's remaining loan.

masonic

JenniferK said:

masonic said:

I don't think the money you have had re-lent at the going rate is the £89.84, it's part of the £4922.66.

In the example quoted by Breadcake the £89.84 was repaid capital that should have been put on the market at 8%.  £4922.66 was the borrower's remaining loan.

Yes agreed, in that example the £89.84 was repaid and would be put back on the market at 8%, while the other £4922.66 would appear to be repaid, but would still be on loan, so would go back on loan at 3%.

In your example, the money you received was not a repayment. The quote you pasted from Ratesetter states this, it was money that was still on loan to a borrower, so it stays on loan at the same rate as when the contract was formed (i.e. it is part of the £4922.66, not the £89.94).

JenniferK

So on that basis I am not receiving any repayments or interest as everything is going back into the market at the going rate.

soulsaver

JenniferK said:

So on that basis I am not receiving any repayments or interest as everything is going back into the market at the going rate.

You should be able to see repayments or otherwise in your transaction history (on lh side options). 
Sorry to say, it's not the easiest doc to work through. 
You'll find monthly cap & interest repayments in there and you should be able to track what RS have done with them..

dale_cotterill

Do hopefully be able to provide an answer to your first question, my withdrawal request was completed today and the funds moved to my holding account. I made the withdrawal request on either the 12th/13th March.

masonic

JenniferK said:

So on that basis I am not receiving any repayments or interest as everything is going back into the market at the going rate.

Yes, in any given month you can expect to see roughly 2-10% of your money on loan being repaid by a borrower, whereas the other 90-98% will be your investment in the same loans rolling over. It's only during a liquidity event it becomes apparent what's going on behind the scenes at Ratesetter. It was always an illusion that people in the Rolling/Access market had all of their money repaid and reinvested each month.

Breadcake

soulsaver said:

JenniferK said:

So on that basis I am not receiving any repayments or interest as everything is going back into the market at the going rate.

You should be able to see repayments or otherwise in your transaction history (on lh side options). 
Sorry to say, it's not the easiest doc to work through. 
You'll find monthly cap & interest repayments in there and you should be able to track what RS have done with them..

In addition to the transaction history the following can help trace what is happening behind the scenes:
Your lending > my account > access (or other market) > on loan
You can then view ‘your money on loan’ and ‘your repaid money’ links below:
https://members.ratesetter.com/your_lending/money_on_loan/by_product_on_loan.aspx?pid=1

https://members.ratesetter.com/your_lending/money_on_loan/repaid_lending.aspx?pid=1
Within these you’ll find ‘Loan number’ and this does not change. 

So sticking with my example, as months pass the amount borrowed to ‘borrower A’ will have different contract numbers (as seen in transaction history) however, the loan number will not change. Hopefully, this clears up what is happening. Even if the answer is as you’re suspecting, at least you’ll be able to provide ratesetter with the offending contracts and loan numbers.
Please keep us updated.