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Post by gravitykillz on Dec 5, 2018 10:00:23 GMT
Was just wondering what the profile of your average borrower was if anyone knows. Does lending works lend to sub prime borrowers ? Or prime borrowers with good credit ? I know it shouldnt matter considering you have a pf and insurance but i am curious.
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keystone
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Post by keystone on Dec 5, 2018 10:46:32 GMT
Average income of borrowers £34,137
Average loan size £6,125
59% Homeowners
Borrower gender 33% Female, 67% Male
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Post by propman on Dec 5, 2018 15:55:50 GMT
Average APR 11.7% is a better guide...
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bigfoot12
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Post by bigfoot12 on Dec 5, 2018 21:02:27 GMT
Average APR 11.7% is a better guide... Certainly is. 51% of customers get 9.9% (or better), compared to 3.3% for personal loan customers at first direct (at least 51% again).
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ashtondav
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Post by ashtondav on Dec 10, 2018 16:31:52 GMT
Quality of borrower is irrelevant. Pricing the loan interest rate correctly is very relevant.
As long as LW is pricing its loans correctly to deliver 6.5% we're all hunky dory. But one thing is certain, unlike in the past 5 years in the next five years we will see a RECESSION - and then we will see defaults rise. Lets hope 6.5% is achievable over the market cycle. Personally i will be happy with 5.5% being achieved over the next five years.
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bigfoot12
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Post by bigfoot12 on Dec 10, 2018 19:36:32 GMT
Personally i will be happy with 5.5% being achieved over the next five years.
Do you think a platform such as this can survive delivering less than promised? (i.e. with a bust provision fund)
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Post by propman on Dec 11, 2018 9:42:20 GMT
Personally i will be happy with 5.5% being achieved over the next five years.
Do you think a platform such as this can survive delivering less than promised? (i.e. with a bust provision fund) That is the point and will depend on how early they respond, how much they use and the communication relative to other providers. What I fear is that they will be tempted to become progressively more optimistic on recoveries and defaults until they are forced to take drastic action as they are nearly out of fund. That would mean the message changes from "Business as usual" No-one will get less than expected to you have lost money and the protections we were trumpeting yesterday aren't available at all! If they could up the money into the fund while only repaying a proportion of defaults then I don't think that it would be fatal so long as the market as a whole had increased defaults (ie it isn't their underwriting that is worse than others). It also depends on what loans they are writing. RS is vering ever more into property loans which will be impacted more than other loan segments when the property market crashes.
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Post by albermarle on Dec 15, 2018 12:09:21 GMT
Average APR 11.7% is a better guide... According to Moneyfacts website today , they say the average rate for a £5000 unsecured personal loan over 3 years is 6.8% and for 5 years 4.8%. Whilst the lowest rates for the most credit worthy borrowers are 3.4% and 2.8% respectively. So it does not stack up that LW are apparently only lending to A+ prime borrowers but charging nearly 12 % …...
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sd2
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Post by sd2 on Feb 12, 2019 18:45:37 GMT
For me using a soft search £10,000 3 years. 2.8% Sainsbury and Admiral. A few others follow with Zopa coming in at 3.3%. Lending works and ratesetter coming in at around 6.9%. When I drop it to £4,000, Zopa ratesetter and lending works are the lowest rates at (if I recall correctly) 6.9%.
I was using Money Saving Expert who use Experian credit reference.
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sd2
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Post by sd2 on Jun 18, 2019 11:29:01 GMT
Quality of borrower is irrelevant. Pricing the loan interest rate correctly is very relevant.
As long as LW is pricing its loans correctly to deliver 6.5% we're all hunky dory. But one thing is certain, unlike in the past 5 years in the next five years we will see a RECESSION - and then we will see defaults rise. Lets hope 6.5% is achievable over the market cycle. Personally i will be happy with 5.5% being achieved over the next five years.
For me 2.8% Saintsbury and Admiral. 3.3% Zopa. Lending works and ratesetter 6.9% on a £10,000 loan Bring it down to £5,000 (might have been £4,000) and cheapest was Zopa Ratesetter and lending works all on 6.9%. lending works can be fussy who they lend to for smaller loans. I assume?
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r00lish67
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Post by r00lish67 on Jun 18, 2019 12:49:55 GMT
Quality of borrower is irrelevant. Pricing the loan interest rate correctly is very relevant.
As long as LW is pricing its loans correctly to deliver 6.5% we're all hunky dory. But one thing is certain, unlike in the past 5 years in the next five years we will see a RECESSION - and then we will see defaults rise. Lets hope 6.5% is achievable over the market cycle. Personally i will be happy with 5.5% being achieved over the next five years.
For me 2.8% Saintsbury and Admiral. 3.3% Zopa. Lending works and ratesetter 6.9% on a £10,000 loan Bring it down to £5,000 (might have been £4,000) and cheapest was Zopa Ratesetter and lending works all on 6.9%. lending works can be fussy who they lend to for smaller loans. I assume? You must be a good'un, LW's weighted average APR for 2019 is 14.4%...
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sd2
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Post by sd2 on Jun 23, 2019 23:30:07 GMT
For me 2.8% Saintsbury and Admiral. 3.3% Zopa. Lending works and ratesetter 6.9% on a £10,000 loan Bring it down to £5,000 (might have been £4,000) and cheapest was Zopa Ratesetter and lending works all on 6.9%. lending works can be fussy who they lend to for smaller loans. I assume? You must be a good'un, LW's weighted average APR for 2019 is 14.4%... I am guessing but I suspect there interest rates are very high when they lend through Argos etc? When I applied direct it was 9.9%. Yes I am a "good'un" I have very high imaginary income when I am applying for zero interest credit cards etc!!
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