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Post by portlandbill on Nov 27, 2017 11:00:57 GMT
Do they mean that if you turn re-investment on when your funds have transferred, any new loans bought with your re-invested repayments won't have SG? Really, they're simply reminding people about the demise of SG. That's exactly how I read it. Loans will be sold and replaced with equivalent loans (with SG) but subsequent repayments will be lent to new loans without SG (if set to re-lend).
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aju
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Post by aju on Nov 27, 2017 17:37:22 GMT
There was a link, but I avoided following it and went in via the normal login. The trouble with following email links is that you can never be 100% sure where it leads to. There are plenty of counterfeit login screens out there ... (PS sorry I mangled the /quote stuff when I was trying to edit it down). I did eventually get the link yesterday after I declared I didn't!. I should have known better but I clicked it anyway, largely because for me the only place it clearly states that SG will be reinvested as SG was in the email. Perhaps my english is so bad - its changed a lot since I was at school - but I'm still not sure that its transparently clear without that bit and I needed a clear log/trail of evidence in case down the line I had misunderstood and it sufffered from large loans that then defaulted without cover. (Thats my excuse anyway) So the next thing is I have been invited by email but Mrs Aju has not as yet. My name start with "A" and hers with a "C" so maybe it will take a bit longer alphabetically speaking. I also started lending with Zopa (2006) a lot earlier than she did (2013) as well so perhaps thats a factor too, who knows!, or for that matter even cares ;-)
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Post by wyndstryke on Nov 27, 2017 18:19:53 GMT
Not sure about the order in which emails are being sent. My surname and username is near the middle of the alphabet, my email address is towards the end of the alphabet, whereas my join date was 2008. I'm a little surprised that they didn't send it all out simultaneously (perhaps they're trying to avoid being flooded, or blocked by anti-spam filters).
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Post by Deleted on Dec 4, 2017 23:18:29 GMT
I enquired about how diversification rules are going to work, when transferring from my Classic account, when the loans are re-purchased in my ISA Core account. I enquired about transferring in £14K of my existing safeguarded loans (all of which are at £10 or less). Zopa told me I'd get 100 x £140 new safeguarded loans (i.e. the 1% rule still applies).
So it seems that they are NOT looking at matching any existing diversification and the 'new money' rules will apply to these one-off free (but safeguarded) transfers.
OK, so ultimately they will still be safeguarded, but if you had a few of those in difficulty or go bad around the same time at that sort of value, that's a fair amount to be waiting 4 months to get back (with potentially 0% return during the process).
I currently have 1.7% (qty:4) of my safeguarded ISA loans marked as having missed a payment, now I know that they might not all default, but it's something to consider when your loan size is significant.
Anyone have any thoughts ?
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aju
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Post by aju on Dec 5, 2017 0:49:45 GMT
I enquired about how diversification rules are going to work, when transferring from my Classic account, when the loans are re-purchased in my ISA Core account. I enquired about transferring in £14K of my existing safeguarded loans (all of which are at £10 or less). Zopa told me I'd get 100 x £140 new safeguarded loans (i.e. the 1% rule still applies). So it seems that they are NOT looking at matching any existing diversification and the 'new money' rules will apply to these one-off free (but safeguarded) transfers. OK, so ultimately they will still be safeguarded, but if you had a few of those in difficulty or go bad around the same time at that sort of value, that's a fair amount to be waiting 4 months to get back (with potentially 0% return during the process). I currently have 1.7% (qty:4) of my safeguarded ISA loans marked as having missed a payment, now I know that they might not all default, but it's something to consider when your loan size is significant. Anyone have any thoughts ? If they are safeguarded there is not a problem as far as I can tell. Not sure about the defaulted in trouble ones in SG since they have safe gaurd on them it should nt be an issue either. I have already had a few SG in ISA one I picked up has defaulted in my side but paid ok. I'll check but I'm pretty sure that SG defaults also pay the interest due as well. .... Yep, Just checked in my invest alltime csv and all the defaulted paid SG have no arrears and the interest rates look correct too on the interest returned. Okay they finish early but at least nothing is lost and they are relent if relending is turned on. I also checked the 1 defaulted ISA SG I have and it has no arrears and the rate of interest paid looks good too. so nothing seems to be lost in an SG default either in Classic or in ISA core. I too have picked up over 25% sg on loans in ISA on a 5 figure sum. Mrs aju has slight less that 25% but all defaults will be paid if the SG holds up. Hope this helps. Of course if you are wanting the money urgently then I'm not sure this is the right investment for you. 4 months doesn't seem long to wait for a default to pay if they have interest as well. elsewhere it says if they are car finance then they will only take 2 months. See zopa principles.
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Post by Deleted on Dec 5, 2017 1:26:09 GMT
aju , thanks for your reply, it makes sense and I appreciate you checking. I guess what worries me more (and I know this is off-topic for this thread) is that of my non-SG loans (in my ISA) I already have 2.2% (qty:10) of 445 loans that have missed a repayment, most of which (8 out of 10) are looking very likely to default (as in borrower advised of missed payment multiple times/months with no payment made). So with interest reinvested without SG, to me this seems a pretty high average. I'm fairly new at this, so please don't shoot me down ! I'm wondering if RS is a better bet ? They do at least have a provision fund and pay a better rate. Maybe I should just let my Classic pay back into the holding account and drip feed it into RS ?
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aju
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Post by aju on Dec 5, 2017 12:17:26 GMT
aju , thanks for your reply, it makes sense and I appreciate you checking. I guess what worries me more (and I know this is off-topic for this thread) is that of my non-SG loans (in my ISA) I already have 2.2% (qty:10) of 445 loans that have missed a repayment, most of which (8 out of 10) are looking very likely to default (as in borrower advised of missed payment multiple times/months with no payment made). So with interest reinvested without SG, to me this seems a pretty high average. I'm fairly new at this, so please don't shoot me down ! I'm wondering if RS is a better bet ? They do at least have a provision fund and pay a better rate. Maybe I should just let my Classic pay back into the holding account and drip feed it into RS ? No probs glad it helped - I didn't think we got all the interest when it defaults so still not 100% sure. I guess it doesn't fail in arrears that long for what we see in our book. On the collections and arrangements front I haven't checked those recently for ISA as it still seems a bit early yet. I'm guessing many of them will turn into defaults perhaps. It's one reason I like to keep diversification down to £10 loans as much as possible. I did notice in Plus of Invest that I had a lot of collections before they started defaulting and quite a high proportion of them did turn bad (I use that term loosely as many defaults are not really bad as such). (Edit: Just checked and of the 10 ISA collections I have, only 2 are very close to default with 3 misses in a row. Its interesting that Car loans are not defaulting after 2 missed's as stated recently in the principles updates perhaps "car loans" and "car finance" are 2 different things!)
Can't say about RS I know when we discussed this on another Zopa thread a number of people suggested that RS was good but personally I wasn't convinced. At the time people were saying you can get 6% but when I checked it fluctuated hourly as far as I could tell so its a bit like Zopa to a degree if you timed it right you could get a high rate but it seemed a bit too hit and miss and knowing my luck I'd hit it just as I got the lower ones. At least Zopa controls it and smooths it out to a fashion. The issue on zopa is getting a lot high ones that then either bale out or default and you are left with lower value. If you keep relend on though as i do it seems to balance out. For me then I looked at others but I'm happy with zopa at the moment. Not sure that helps though.
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Post by wyndstryke on Dec 5, 2017 14:03:47 GMT
Zopa are doing secured car loans for Uber drivers via Uber (my understanding is that this is being funded by a venture capitalist, and does not involve peer to peer money so we won't see any like this). I suspect the secured loans are 'car finance', whereas what we see is just the normal unsecured loans with the lending purpose being for cars. blog.zopa.com/2015/05/08/zopa-partners-with-uber-to-help-drivers-own-their-cars/
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aju
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Post by aju on Dec 5, 2017 15:47:46 GMT
wyndstryke thanks, that answer does make a lot of sense and is probably the reason they are not triggering early in my book at least. I think it's interesting that us proletarians are not getting access to secured lending on Zopa though - bloody riff raff that we are of course ;-). It does say initially we won;t get access, wonder what will happen down the line though. Not sure, however, if i'd want to lend on it. I'd need to understand it more especially as most people I know in that line of work seem to keep the car for for just over half the finance period and return it to get another car with a brand new finance deal and start again.
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