aju
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Post by aju on Jul 13, 2019 15:27:14 GMT
Reading in the Times Money today it would seem Zopa is quoting that Plus would have made an interesting earning.
I'm not sure my Plus during that period would be the same but I'm guessing it assume the loans lasted the whole year although defaults in that year would have picked up by 2019 if my experience is anything to go by.
I checked very loosely on my average lender rate for these loans originated in 2018 and it was 4.8%. Its a good job they were not using 2017 Plus loans though. To be fair I might have got closer if I could easily isolate my early adopter I guess but Zopa does not include this I think!.
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Post by propman on Jul 14, 2019 7:24:32 GMT
I didn't invest much in Plus in that year, but this is conceivable if you only include the defaults that were recognised in 2018. My experience is that returns are pretty good initially but tail off later as defaults accumulate and higher rate loans decline (due to defaults and early repayments), so not a realistic expectation over the loan terms, but may be in the period they say!
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benaj
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Post by benaj on Jul 14, 2019 9:48:50 GMT
The article was written by a freelance journalist who writes frequently on P2PFN.
According to his info:
"My writing has appeared in a variety of print and online publications from Financial Times Business to the Mail on Sunday and I am able to write anything from news and features to natives and advertorials."
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aju
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Post by aju on Jul 14, 2019 10:07:56 GMT
The article was written by a freelance journalist who writes frequently on P2PFN. According to his info: "My writing has appeared in a variety of print and online publications from Financial Times Business to the Mail on Sunday and I am able to write anything from news and features to natives and advertorials."I looked on LinkedIn where his Bio is freely available - one of the things it says is There were also lot of quotes from all the usual suspects, some who come here a few times, I assumed though the Zopa one came from Zopa's website perhaps ... I do agree with propman though that taking a 5 year product and fixing its rate as in the first year is not a realistic view of the overall expected rate of the number of loans it quoted.. Also taking a 5Y period and narrowing it down this way is unrealistic too. The other fact they forget to add in usually is that the rate is dependant on the contibuting lending rather than keepit for year and 5.2% sticks. To do this you would have to sell it at a 1% loss after the year was up. To take a look at my own loans I track loans lent in a specific year and track the defaults on them, my 2018 ISA period has defaults but my 2019 ISA only has 1 so far this year. Year Number Outstanding Defaults
loans defaults as %
acquired loans
---- -------- ----------- --------
2017 1954 56 2.87%
2018 4921 70 1.42%
2019 1177 1 0.08%
Just a thought I guess
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ashtondav
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Post by ashtondav on Jul 14, 2019 10:11:52 GMT
My wife’s getting 2.6% so some lucky sod must be getting north of 7%.
And it ain’t me!
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aju
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Post by aju on Jul 14, 2019 10:33:10 GMT
My wife’s getting 2.6% so some lucky sod must be getting north of 7%. And it ain’t me! Hopefully you are not like myself and Mrs Aju who initially lent in £1990 blocks at the same time so have a number of the same loans and more than I'd like went bad as well. fortunately most are £10 one but they are increasing.
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Post by Deleted on Jul 14, 2019 14:17:53 GMT
To take a look at my own loans I track loans lent in a specific year and track the defaults on them, my 2018 ISA period has defaults but my 2019 ISA only has 1 so far this year. Year Number Outstanding Defaults
loans defaults as %
acquired loans
---- -------- ----------- --------
2017 1954 56 2.87%
2018 4921 70 1.42%
2019 1177 1 0.08%
Just a thought I guess
Loans cannot be in default until they are at least 4 months old, so only loans that started prior to 12 March this year could have defaulted so far.
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aju
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Post by aju on Jul 15, 2019 6:34:45 GMT
To take a look at my own loans I track loans lent in a specific year and track the defaults on them, my 2018 ISA period has defaults but my 2019 ISA only has 1 so far this year. Year Number Outstanding Defaults
loans defaults as %
acquired loans
---- -------- ----------- --------
2017 1954 56 2.87%
2018 4921 70 1.42%
2019 1177 1 0.08%
Just a thought I guess
Loans cannot be in default until they are at least 4 months old, so only loans that started prior to 12 March this year could have defaulted so far. My point was that 5y loans are not just about the 1st year but thanks for the reminder of loans and defaults. At present in zopa even sg loans technically in default are delayed completion due to systems issues.
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