benaj
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Post by benaj on Jan 3, 2018 13:09:21 GMT
I looked into the all time loan book earlier and I was surprised by the size of these Zopa D / E loan. Largest D loan is £15k and largest E loan is £10k. E Loans: | Median loan Size | £4500 | | Median loan term | 36 months | | Borrower rate | 25.9% ~ 29.6% |
The comparable I found on the market are Opal loan and 1st stop personal finance Here is Representative Example from opal: The Representative APR is 29.9% APR (fixed) so if you borrow £10,000 over 5 years at a rate of 29.9% p.a (fixed) you will repay £302.05 per month. Total interest payable will be £8,123. Total amount repayable is £18,123. Maximum APR: 299%. |
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aju
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Post by aju on Jan 4, 2018 0:22:38 GMT
wow some poor s*d is paying thru the nose then. I bet it won't go the course either.
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ashtondav
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Post by ashtondav on Jan 4, 2018 9:30:44 GMT
I looked into the all time loan book earlier and I was surprised by the size of these Zopa D / E loan. Largest D loan is £15k and largest E loan is £10k. E Loans: | Median loan Size | £4500 | | Median loan term | 36 months | | Borrower rate | 25.9% ~ 29.6% |
The comparable I found on the market are Opal loan and 1st stop personal finance Here is Representative Example from opal: The Representative APR is 29.9% APR (fixed) so if you borrow £10,000 over 5 years at a rate of 29.9% p.a (fixed) you will repay £302.05 per month. Total interest payable will be £8,123. Total amount repayable is £18,123. Maximum APR: 299%. Seems about right if the median is £4,500. High risk folks like nice big new shiny cars too. And they can always default!
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jan 4, 2018 9:57:42 GMT
I looked into the all time loan book earlier and I was surprised by the size of these Zopa D / E loan. Largest D loan is £15k and largest E loan is £10k. E Loans: | Median loan Size | £4500 | | Median loan term | 36 months | | Borrower rate | 25.9% ~ 29.6% |
The comparable I found on the market are Opal loan and 1st stop personal finance Here is Representative Example from opal: The Representative APR is 29.9% APR (fixed) so if you borrow £10,000 over 5 years at a rate of 29.9% p.a (fixed) you will repay £302.05 per month. Total interest payable will be £8,123. Total amount repayable is £18,123. Maximum APR: 299%. Seems about right if the median is £4,500. High risk folks like nice big new shiny cars too. And they can always default! I agree. With the current increase in automated calls coming through from companies offering an escape from debt if you owe £Xo and ..... more debt is no disincentive to those that believe they can just walk away.
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Post by penguin on Jan 4, 2018 11:47:00 GMT
Still rather baffled as to where Zopa think this type of lending is going to take their lender proposition, given they have spent many year building up their rep as a low risk platform
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aju
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Post by aju on Jan 4, 2018 15:05:03 GMT
Perhaps they could make it a bit more low risk if they allowed people to chose their lend rate rather than just let it flow @1% diversification, they may even increase it to what it was 2/3 years ago of 2% if they feel it is safe. Without SG I would never want that.
Whilst I agree with a lot of the comments and it definitely feels like Zopa is more of a risk that in the past - especially now the SG is gone - I do still think that lending large sums (£3000 or more) at £10 is much safer than £50 a pop say on £5000. I know that "hard sums" may dispute this overall but I'm a lot more comfortable if I have 5 loans @ £10 fail in a month than if I get 5 @ £50 fail. Time will tell if I am right.
A lot of the people on here in the last few months have been looking at things on a month on month basis. I still keep an eye monthly but I defer to 12 month cycles overall. Having been on Zopa a very long time I have quite a bit of profit leeway to fall foul of but also I was very wary of no SG cover on the Plus deal so made sure I only lent at 10% of my whole Zopa investment at that time.
Now the cover on SG is gone and the fact I have had quite a lot of £10 loans on SG fail (covered by SG so no losses as such) I am waiting for a correction on my £10 loan theory over the next 12-18 months. So far on SG @ £10 I have had >£600 in danger over the whole period (and not a D&E in sight either) so I'm definitely expecting to have defaults that cause damage now that SG has gone.
At the moment my cover on SG is is down slight to 87% but hopefully soon I will be transferring £5000 from SG invest to SG covered ISA Core. that will then mean that my exposure in Invest to Plus will be increased to nearer 25%. Over both pieces though the exposure will still be the same.
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benaj
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Post by benaj on Jan 4, 2018 23:35:12 GMT
Seems about right if the median is £4,500. High risk folks like nice big new shiny cars too. And they can always default! To be fair, the chance to have all the D and E loans in default is very unlikely. According to all time my loan book | Market | No of loans | Loans expected default | Actual Loans in default (after 8 months) | | A* | 228 | 2.28 | 0 | | A1 | 109 | 1.63 | 1 | | A2 | 197 | 4.93 | 2 | | B | 133 | 5.32 | 2 | | C1 | 160 | 10.4 | 4 | | D | 204 | 22.44 | 8 | | E | 76 | 9.12 | 3 |
As you can see, most of my default loans are D, the median loan size (D) is £6000 and medium loan term (D) is 48 months
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