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Post by vanthel on May 26, 2017 23:41:07 GMT
Most of the money was invested around September - November last year. Untill this morning I had two defaults, now I have 6. I'm earning about 8.5%, but I am expecting this to fall some. Zopa + expected return is 6.6% with repayment reinvested. I believe this is true. So far, my 1st month has 11 comments regarding manual repayment out of 627 loans. In my experience manual repayment is nothing to be concerned about nothing to be immediately be concerned about, I asked CS about this before and they highlighted that typically it was because direct debits fail or simply never work for some customers. I've had loans come to term with near every single repayment done with manual replacements. Commonly the first one will fail and then it will be resolved. Of course that being said I've had plenty default like that too. Either way it's not as reliable a red flag as it first appears.
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Post by gidoppp01 on May 27, 2017 3:47:47 GMT
Zopa + expected return is 6.6% with repayment reinvested. I believe this is true. So far, my 1st month has 11 comments regarding manual repayment out of 627 loans. In my experience manual repayment is nothing to be concerned about nothing to be immediately be concerned about, I asked CS about this before and they highlighted that typically it was because direct debits fail or simply never work for some customers. I've had loans come to term with near every single repayment done with manual replacements. Commonly the first one will fail and then it will be resolved. Of course that being said I've had plenty default like that too. Either way it's not as reliable a red flag as it first appears. Manual repayment in the 1st month is a big concern, Zopa has never posted any statistics about manual repayment in the first month. The fact is, once the loanbook has an entry of manual repayment, the loan contract cannot to sold to another investor. So for me, 1.7% of my loans become risky and cannot be resold within the 1st month. According to zopa, in 2016 expected default rate is 4.09% and actual arrears is 0.56 %. Assuming all the defaulted loans and loans in arrears have a history of missed repayment, plus many loans that have a history of missing repayment but not treated as defaults and arrears, it is very likely 6.35%+ of the zopa plus investment cannot be sold within 1st year. They have never mention this statistics in their risk statement. If I knew this, I would not have considered investing Zopa plus in the first place because it does not suit my investing strategy.
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Post by misotu on May 27, 2017 7:02:49 GMT
Long term Zopa lenders were used to taking all the risk in the pre-safeguard days (and through the downturn in 2008/2009), and many didn't like the safeguarded model. Zopa plus is just a return to the norm for us.
Well, yes and no. A lot of lenders stuck to A*/A markets back then and Zopa Plus doesn't give you that option. It's not just new lenders who might have a bit of a shock when the sub-prime defaults start rolling in ...
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Post by GSV3MIaC on May 27, 2017 16:53:41 GMT
/mod hat off
IMO it stopped being P2P when I no longer had any control over who (or if) I lent to, and at what rate, which was quite a while ago. It turned into 'Santander Lite', without any FSCS protection.
RS at least let me determine what rate (sort of), but still not who/whether.
Problem is I am not sure that the true 'P2P' (with discrete lenders matching discrete borrowers) can ever be scaled up to millions-2-millions, when 95% of the lending side are 'can't be bothered' grannies, and x% of the borrowing side are wannabe bandits who need weeding out with a blunt instrument. Other opinions exist....
8>.
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metoo
Member of DD Central
Posts: 540 
Likes: 410
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Post by metoo on May 27, 2017 20:24:24 GMT
Long term Zopa lenders were used to taking all the risk in the pre-safeguard days (and through the downturn in 2008/2009), and many didn't like the safeguarded model. Zopa plus is just a return to the norm for us.
Well, yes and no. A lot of lenders stuck to A*/A markets back then and Zopa Plus doesn't give you that option. It's not just new lenders who might have a bit of a shock when the sub-prime defaults start rolling in ... Zopa Core comes closest to this (like Plus without a safeguard but omits D/E).
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