What has happened to the rates in January? I was expecting people to be running out of cash by now as the pre Xmas December pay checks run dry and the costs of the festive frivolities adds up. Current rolling rates are the lowest for months. Apparently though January 15th is the most depressing day of the year as credit card statements start dropping through the letter boxes. Maybe just a few more days until rates surge? Hope so!
Last week of January, I’m hoping to see 5.9%+ on 5 year money. Otherwise the repayments get recycled to F.C. and AC. In fact I’ve now got into a habit of "month end sweep", where I Review all accounts and shift repayments accordingly.
Just wish I understood assetzcapital provision fund rules. Also wish for higher rates on Zopa+ and RS to rid itself of MR. Oh, and FS, more rolexes and less property developers please. Apart from that I'm a happy bunny.
Rolling money is mainly the costant refunding of longer term loans, very few people borrow for a month or less. This is why on a Monday there could be an eight figure sum to be financed, because of the requirement to finance the short term lending from lenders on the long term loans. Recently it would appear that some large long term loans have repaid (personally I had early repayment in the 5 year market made in the halcyon days of October when rates spiked above 6.6% because of the rare occurance of borrowing demand exceeding lending supply on, for Ratesetter, large loans exceeding one million i suspect some loans like these have been refinced elsewhere).
Therefore the requirement for the constant churn each week has deninished and with it rates.
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