ashtondav
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Post by ashtondav on Nov 4, 2017 11:43:08 GMT
But why the deafening silence from Zopa? OK, we now expect returns from + of 4-5%, but some here are getting 1-2% or losses. This just doesn't make sense, especially as my monthly net earnings (50% +, 50% core/classic) are just as expected, probably with a year end return of 5%.
It should be noted that of my net monthly interest of £284 no less than £10 of it is repayments from defaulters. A staggering 3.5%.
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Post by yorkman on Nov 7, 2017 8:21:17 GMT
It continues to get worse. On an investment of £5000 split between Core and Plus on a roughly 50/50 basis my net interest this month is -£1.46. That's enough for me, I'm out and all repayments are now being withdrawn.
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Post by WestonKevTMP on Nov 7, 2017 8:46:20 GMT
Personally I'm getting a positive return. So it seems to me that Zopa haven't done a great job of smoothing any statistical volatility linked to getting an even spread of bad debt across all lenders.
What I don't know, do Zopa change the blend of future loans based on previous performance. Or just keep with same allocation strategy and hope things even out. Changing the loan make-up would be dangerous, as if they've got their bad debt estimates by risk profile wrong, simply giving higher return loans (to those that had a reduced AER return before) could make things even worse.
That said, the irony is that those that have had reduced earnings should stay in and hope Zopa give them preferred treatment. The "lucky" ones like me should probably get out!
Kevin.
P.S. This is why I prefer Provision Funds than fractionalisation of loans. Even if in theory it does reduce returns, it's insurance worth paying.
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ashtondav
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Post by ashtondav on Nov 7, 2017 13:02:24 GMT
Yes, the genius who suggested binning SG needs to be - binned! I don't reckon you can predictably achieve Zopa' estimated returns until you have at least £20,000 invested.
Refardless, rates are now too low compared to RS. Withdrawals continue - even though I'm making targeted returns.
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Post by wyndstryke on Nov 7, 2017 14:27:56 GMT
P.S. This is why I prefer Provision Funds than fractionalisation of loans. Even if in theory it does reduce returns, it's insurance worth paying. My personal concern with provision funds is that if the economy deteriorates they'll suddenly get emptied - they seem to be fine tuned to just cover currently-expected defaults with no additional safety margin.
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Mick
Be nice... People respond.
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Post by Mick on Nov 7, 2017 22:07:41 GMT
You must be using better banks than mine, I struggle to get more than 1% on my ISA, and that's with all sorts of restrictions (minimum & maximum monthly payments. max investment limit, rate drops for a month if there is a withdrawal, etc). Atom, 1 yr lock. I got 2 o/o.
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angrysaveruk
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Post by angrysaveruk on Nov 8, 2017 10:17:05 GMT
You must be using better banks than mine, I struggle to get more than 1% on my ISA, and that's with all sorts of restrictions (minimum & maximum monthly payments. max investment limit, rate drops for a month if there is a withdrawal, etc). Atom, 1 yr lock. I got 2 o/o. I also deposited with Atom for 1 year. not entirely sure how secure their voice recognition is 
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ashtondav
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Post by ashtondav on Nov 8, 2017 17:36:48 GMT
2% with santander plus cash back.
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angrysaveruk
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Post by angrysaveruk on Nov 8, 2017 20:50:04 GMT
2% with santander plus cash back. Which account is that? I have 2x 123 accounts but that is only 1.5% and each has a £5 per month fee.
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edward
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Post by edward on Nov 8, 2017 22:28:41 GMT
I am also curious...best I could find was 1% for a 3 year fix, a preferential rate for existing customers only.
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aju
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Post by aju on Nov 9, 2017 0:11:08 GMT
Its a bit faffy but I recomend 5% with N/w 1st - only £2500 for 12 months and some hoops sadly but still worth the effort. Also quite lucrative if you haven't done recommend a friend yet. £100 each if they follow the rules.
Tescos has some hoops but with £3000 @ 3% is not bad either. Mrs AJU has the hoops mine is older and does not so that is a bonus the 3% also is guarateed until 2019 as well, unless they've changed their minds since we last did it.
I got through others and work my way down to Santander at 1.5% plus fees, although in master account the DD's cover the fees easily.
Edit: I mean current accounts only though the savings are not quite so good in my opinion.
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p2pmark
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Post by p2pmark on Nov 9, 2017 8:27:26 GMT
But why the deafening silence from Zopa? OK, we now expect returns from + of 4-5%, but some here are getting 1-2% or losses. This just doesn't make sense, especially as my monthly net earnings (50% +, 50% core/classic) are just as expected, probably with a year end return of 5%. Assuming the 4-5% figure is accurate, this implies some people are getting 10%+.
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Post by newlender on Nov 9, 2017 8:50:41 GMT
Not me, I'm afraid. I have >£500 of defaults (mainly Z+) on my Investing side. My net income has been derisory for months and it is the old Z+ which is to blame. I've only got £3k of new Z+ in my ISA - a bit of a gamble really - so I'll be interested to see when the defaults start rolling in. Income is estimated at 4.5% after defaults and I'm going to track it carefully. That won't be bad under the ISA wrapper and I'll be happy (ish) if I get it.
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ashtondav
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Post by ashtondav on Nov 9, 2017 9:25:09 GMT
Sorry typo! Santander 1.5% plus cash back and £5 a month fee. Works well if you have £20,000 invested.
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Post by GSV3MIaC on Nov 9, 2017 10:08:53 GMT
But why the deafening silence from Zopa? OK, we now expect returns from + of 4-5%, but some here are getting 1-2% or losses. This just doesn't make sense, especially as my monthly net earnings (50% +, 50% core/classic) are just as expected, probably with a year end return of 5%. Assuming the 4-5% figure is accurate, this implies some people are getting 10%+. Assuming a normal (or at least symmetrical) distribution, which may not be the case.
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