Ratesetter Release Delays

wizzards

coyrls said:

Given that:

Following completion, Metro Bank will use its deposit base to fund all new unsecured personal loans originated via the RateSetter platform

I assume that's the end of RateSetter as a peer to peer business and that the existing loans will just be run down.  Not a huge incentive for Metro Bank to protect the interests of existing lenders.

What it says as an announcement on the Ratesetter site is as follows.  i.e there is no change but it doesn't say whether they will continue the peer 2 peer format just that they will use the systems ratesetter have created.

RateSetter and Metro Bank

Earlier this year, we confirmed that RateSetter was exploring strategic options to ensure our continued growth.  Today Metro Bank has announced that it is acquiring RateSetter.  The acquisition is subject to regulatory approval, as all such transactions are.  

Both RateSetter and Metro Bank are innovative businesses with a shared focus on delivering something better for customers, making this a natural pairing.  Metro Bank plans to significantly grow RateSetter’s lending through the RateSetter platform, using the lending and credit management capability RateSetter has built over the last decade.

Over 750,000 people have invested or borrowed through RateSetter and we are enormously grateful for the trust they have placed in RateSetter.  £4 billion has been lent, providing valuable finance to UK consumers and businesses and generating over £175 million of interest for investors.

For investors, there is no change to your investment, with RateSetter continuing to manage the loan portfolio and the Provision Fund.  Our Investor Services team remains available in the usual way to assist with any questions you may have and will continue to provide all administrative services.    

For borrowers, there is no change and we continue to accept new applications as normal.  Our Borrower Services team remains available in the usual way to assist with any questions you may have and will continue to provide all administrative services.

Over the last ten years, forward-thinking businesses like RateSetter and Metro Bank have stepped forward to deliver something fresh to customers.  Metro Bank’s stated objective is to be the UK’s best community bank and we are delighted that under its ownership, RateSetter will continue to be at the forefront of delivery for customers.

Grogged

Many news reports are saying (from FT):

Although Metro said it would keep the RateSetter brand and service existing loans on behalf of its peer-to-peer investors, all future loans would be funded from customer deposits and kept on its balance sheet.

It looks like only Metro will be funding loans once the sale completes.
Everyone else's loans will run down, unless I've read it wrong.

coyrls

Grogged said:

Many news reports are saying (from FT):

Although Metro said it would keep the RateSetter brand and service existing loans on behalf of its peer-to-peer investors, all future loans would be funded from customer deposits and kept on its balance sheet.

It looks like only Metro will be funding loans once the sale completes.
Everyone else's loans will run down, unless I've read it wrong.

That's how I read it.

coyrls

I was wondering if Metro will use their deposit base to refinance existing viable Ratesetter loans, paying the balance back to the peer to peer lenders and use the provision fund to take over the remaining loans, thus relieving themselves of having to wind down the existing business over the next five years.

wizzards

coyrls said:

I was wondering if Metro will use their deposit base to refinance existing viable Ratesetter loans, paying the balance back to the peer to peer lenders and use the provision fund to take over the remaining loans, thus relieving themselves of having to wind down the existing business over the next five years.

I doubt it.   If they took on the loans and just paid back the capital + some interest to ratesetter lenders where would that leave the Provision Fund ?  They might just take on some of the loans i.e the viable / profitable ones.  The options are endless.  Or they could just leave the ratesetter loans to run their course and the lenders to wait for years for their cash which is sadly the most likely outcome worst case.
I think this paragraph on the ratesetter website in the announcement says it all reading between the lines. Its says they managing the loan portfolio and not anything about new loan requests and how they will be managed etc.

For investors, there is no change to your investment, with RateSetter continuing to manage the loan portfolio and the Provision Fund.  Our Investor Services team remains available in the usual way to assist with any questions you may have and will continue to provide all administrative services. 

Carolinemjs

I'm so grateful for this advice as I'm a small investor who didn't really appreciate the risks.  Less than 24 hours since following this suggestion and I've already got half of one account being repaid.

wizzards said:

As a lender I have found you can still get some cash back from ratesetter by doing the following.  Set the interest rate at +5% manually above the ratesetter set rate. This is the max you can set it.  I am doing this on the access and 1 year and 5 year options.
Login into ratesetter every morning and evening to withdraw cash thats not matched to lenders.  You can recover in excess of £1K a month.  It really depends also whether the loans you have are amortising or non amortising loans.  Not every repayment you get will be queued because of this.  This is working well for me and I hope to recover a large % of my money long before I reach the end of the lenders withdrawal queue !!

random321

Carolinemjs said:

I'm so grateful for this advice as I'm a small investor who didn't really appreciate the risks.  Less than 24 hours since following this suggestion and I've already got half of one account being repaid.

wizzards said:

As a lender I have found you can still get some cash back from ratesetter by doing the following.  Set the interest rate at +5% manually above the ratesetter set rate. This is the max you can set it.  I am doing this on the access and 1 year and 5 year options.
Login into ratesetter every morning and evening to withdraw cash thats not matched to lenders.  You can recover in excess of £1K a month.  It really depends also whether the loans you have are amortising or non amortising loans.  Not every repayment you get will be queued because of this.  This is working well for me and I hope to recover a large % of my money long before I reach the end of the lenders withdrawal queue !!

Same for me. I only have a relatively small amount invested but rather than wait in a queue of currently 19,535 before I can withdraw anything I've been able to get small amounts each day by following the above advice which will eventually add up.
Thanks for the advice!

granta

Carolinemjs said:

I'm so grateful for this advice as I'm a small investor who didn't really appreciate the risks.  Less than 24 hours since following this suggestion and I've already got half of one account being repaid.

wizzards said:

As a lender I have found you can still get some cash back from ratesetter by doing the following.  Set the interest rate at +5% manually above the ratesetter set rate. This is the max you can set it.  I am doing this on the access and 1 year and 5 year options.
Login into ratesetter every morning and evening to withdraw cash thats not matched to lenders.  You can recover in excess of £1K a month.  It really depends also whether the loans you have are amortising or non amortising loans.  Not every repayment you get will be queued because of this.  This is working well for me and I hope to recover a large % of my money long before I reach the end of the lenders withdrawal queue !!

Can i ask what sort of time in the morning and evening do you log on to withdraw the unmatched cash? I never seem to be able to time it right!

Carolinemjs

granta said:

Carolinemjs said:

I'm so grateful for this advice as I'm a small investor who didn't really appreciate the risks.  Less than 24 hours since following this suggestion and I've already got half of one account being repaid.

wizzards said:

As a lender I have found you can still get some cash back from ratesetter by doing the following.  Set the interest rate at +5% manually above the ratesetter set rate. This is the max you can set it.  I am doing this on the access and 1 year and 5 year options.
Login into ratesetter every morning and evening to withdraw cash thats not matched to lenders.  You can recover in excess of £1K a month.  It really depends also whether the loans you have are amortising or non amortising loans.  Not every repayment you get will be queued because of this.  This is working well for me and I hope to recover a large % of my money long before I reach the end of the lenders withdrawal queue !!

Can i ask what sort of time in the morning and evening do you log on to withdraw the unmatched cash? I never seem to be able to time it right!

If you've done as done as suggested above by wizzards then I can't see how the time of day makes any difference??
It isn't going to be reinvested at

granta

Carolinemjs said:

granta said:

Carolinemjs said:

I'm so grateful for this advice as I'm a small investor who didn't really appreciate the risks.  Less than 24 hours since following this suggestion and I've already got half of one account being repaid.

wizzards said:

As a lender I have found you can still get some cash back from ratesetter by doing the following.  Set the interest rate at +5% manually above the ratesetter set rate. This is the max you can set it.  I am doing this on the access and 1 year and 5 year options.
Login into ratesetter every morning and evening to withdraw cash thats not matched to lenders.  You can recover in excess of £1K a month.  It really depends also whether the loans you have are amortising or non amortising loans.  Not every repayment you get will be queued because of this.  This is working well for me and I hope to recover a large % of my money long before I reach the end of the lenders withdrawal queue !!

Can i ask what sort of time in the morning and evening do you log on to withdraw the unmatched cash? I never seem to be able to time it right!

If you've done as done as suggested above by wizzards then I can't see how the time of day makes any difference??
It isn't going to be reinvested at

Ok thanks. I have set my rate as high as it allows (8%) but i only manage to get a few pounds out each month this way, but not daily. But maybe i have misunderstood how it works?