Ratesetter Release Delays

thegentleway

thegentleway said:

thegentleway said:

I have 11,211 requests in front of me 

Going down very fast now: one week later and only 5,524 requests

5 days later and it's been released

blueplanet2020

Yes, same here, finally.

thegentleway

blueplanet2020 said:

Yes, same here, finally.

That's good! It's worked out well for me in the end: effective interest rate (including promo) 7.13% over a couple of years

tomla

Although Metro haven't said this anywhere I think the new owners must have started taking on the existing loans, the speed of the release now is at odds with the "no new investors" rule, ie. This can't be existing investors.

Aceace

tomla said:

Although Metro haven't said this anywhere I think the new owners must have started taking on the existing loans, the speed of the release now is at odds with the "no new investors" rule, ie. This can't be existing investors.

Metro have specifically stated that they won't take on the existing loans. The releases are due to the block sale of the property loans. Cash from this has been returned to lenders and is being reinvested by buying up loans from RYIs, thus releasing cash to those wanting to escape. From reports on the forums it seems that many are unaware that they could have extracted these funds and that they are being relent at half their specified rate,  I.e. usually 1.5% in Access, which seems far too low for the risk IMO. 

Rich2808

Anyone get the email this morning from Ratesetter relating to the Metro Bank acquisition of their loan book.
Seems that on 2 April all investors money in all their accounts (including funds on market) will be moved to their holding account - and from that date will earn zero interest. Investors will of course be free to withdraw their funds - or if held in an ISA transfer their funds to another ISA (not exactly ideal to do this 3 days before the tax year end but it is what it is).
It ends 'thank you for being a Ratesetter investor'!
Full details here:

https://www.ratesetter.com/blog/ratesetter-announces-that-metro-bank-is-purchasing-the-loan-portfolio

Aceace

Rich2808 said:

Anyone get the email this morning from Ratesetter relating to the Metro Bank acquisition of their loan book.
Seems that on 2 April all investors money in all their accounts (including funds on market) will be moved to their holding account - and from that date will earn zero interest. Investors will of course be free to withdraw their funds - or if held in an ISA transfer their funds to another ISA (not exactly ideal to do this 3 days before the tax year end but it is what it is).
It ends 'thank you for being a Ratesetter investor'!
Full details here:

https://www.ratesetter.com/blog/ratesetter-announces-that-metro-bank-is-purchasing-the-loan-portfolio

My bold. I'd argue that this timing is advantageous. If you complete your ISA transfer form(s) after April 5th it will count as a previous year transfer, so won't be subject to the current year restrictions. E.g. you will be able to split the funds in the account to multiple new ISA accounts if you wish.

A few potential new places for these funds that might be worth considering: 

https://www.loanpad.com/
https://www.crowdproperty.com/
https://www.kuflink.com/

Rich2808

Aceace said:

Rich2808 said:

Anyone get the email this morning from Ratesetter relating to the Metro Bank acquisition of their loan book.
Seems that on 2 April all investors money in all their accounts (including funds on market) will be moved to their holding account - and from that date will earn zero interest. Investors will of course be free to withdraw their funds - or if held in an ISA transfer their funds to another ISA (not exactly ideal to do this 3 days before the tax year end but it is what it is).
It ends 'thank you for being a Ratesetter investor'!
Full details here:

https://www.ratesetter.com/blog/ratesetter-announces-that-metro-bank-is-purchasing-the-loan-portfolio

My bold. I'd argue that this timing is advantageous. If you complete your ISA transfer form(s) after April 5th it will count as a previous year transfer, so won't be subject to the current year restrictions. E.g. you will be able to split the funds in the account to multiple new ISA accounts if you wish.

A few potential new places for these funds that might be worth considering: 

https://www.loanpad.com/
https://www.crowdproperty.com/
https://www.kuflink.com/

Thanks - agreed if you had invested current year ISA funds in Ratesetter. But I am assuming few people added extra investments in 2020-21 given the risk and uncertainty (as per this thread) so we were only talking about prior year funds (which can be transferred in full or in part anytime).
Just the concern that ISA transfers may be slower around tax year end given the volumes being transferred across institutions - so in that sense not ideal.

soulsaver

Here's a conundrum: RS isa is an IFISA. After April 5th you could move your funds to your bank ac with the expectation of moving it back to the tax wrapper within the 2021/22 tax year... But if RS isn't offering ISAs anymore, will HMRC allow funds to be returned to an ISA wrapper? Probably best to organise a pronto transfer out to another ISA provider and avoid the risk of losing the wrapper. 
Note that not all ISA  providers accept transfers from IFISAs. 

Aceace

soulsaver said:

Here's a conundrum: RS isa is an IFISA. After April 5th you could move your funds to your bank ac with the expectation of moving it back to the tax wrapper within the 2021/22 tax year... But if RS isn't offering ISAs anymore, will HMRC allow funds to be returned to an ISA wrapper? Probably best to organise a pronto transfer out to another ISA provider and avoid the risk of losing the wrapper. 
Note that not all ISA  providers accept transfers from IFISAs. 

If you remove ISA funds from RS manually (i.e. not via a transfer) after 5th April then those funds lose their ISA status regardless. You can transfer them and maintain the ISA status any time, but there are a few restrictions if its from this year's ISA contributions. 
Because RS's ISA is flexible, you can manually remove this year's contributions and put them in an ISA of a different type (cash ISA or S&S ISA) before 5th April,  but can't put these in another IFISA.