Yes, I wonder if there is any investor here who had been in for more than 24 months and with a RAR of 15+%
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Agree. Most RAR graphs appear to peak between 6 and 9 months, and then drop to a long term stable value after 12 - 15 months. The drop appears to be from 1% to 1.5%, but that would vary greatly on the loan grade spread etc.
Because I've put money in quickly and have stopped adding 'new money', I *suspect* I'll see a fairly quick and significant drop when it happens (probably early ~ 10 - 12 months in)?
Continuing from my post on the previous page, my RAR has now increased from 14.55% to 14.72% last Sunday.
Have been in for 30 months and through re-concentrating my lending to specific sub-grades over a number of months, I have a RAR that has steadily increased from 13.91% in April 2017 to 14.39% in June. Today my RAR is 3.22% above the platform, expect to go 15+% soon.
Interesting loan today
BORROWER COMMENTS
the cash will be used to purchase items for me to do airsoft games and in this better my fitness as that of others and keep my car running in tip top safe condition so to enable me to help others to go to the games and enjoy them as much as I do
I remember reading somewhere that Harmoney intends to adjust the RAR to take into account Payment Protect which increases your Outstanding Principal. If they do, it will bump the RAR by about 1% to 1.5%.
At the moment RAR is dropping with the new lower interest rates taking effect - you can see the drop in the Market Stats from early this month. The cynic in me sees HM as trying to present the platform RAR above 10 or 11% as there is a possibility that it could drop below 10% otherwise.
However, even if they do not add the increase principal, the present RAR already reflects the higher repayments to investors due to the increased o/s principal and the slight increase in interest received due to the higher o/s principal. And over time, the total effects of Payment protect will be captured by the present RAR anyway.
Yes, all our RARs are affected by new loans and investments. So, someone who had put in all their money at one go at the very beginning and had been taking out all cash as it comes available will probably have a lower RAR. Besides selection of loans and grades, it is very much affected by the timing of our investments - whether we drip feed, ramp up or down or all in one go.
Putting in new money will on one hand raise the RAR as the new loans did not have enough time to go into defaults. On the other hand, it will lower the RAR in the first month of those loans as the interest for those loans have not kick in.
I suppose the real RAR is when we see through all the investments and have zero balance in outstanding loans at the end of 5 or more years having taken out all our cash by then.
I understand RAR perfectly. My point on that someone taking out money is not that leaving it there affects his/her RAR. It is that he/she do not reinvest into any new loans. You have to read my whole post to get the context.
"So, someone who had put in all their money at one go at the very beginning and had been taking out all cash as it comes available will probably have a lower RAR."
Gotta love some of the comments borrowers put in, hoping it will help them out :
Will definitely help, My car needs a new gear box and at the moment i dont have much money to fund it. So this will definitely help seeing is i need my car for getting to work. I promise once i have the money i will pay my loan off quicker.