Whether things have improved or deteriorated is another (valid) matter.
the fact remains that if you are running down eventually you will be left with only late payers and defaults. The good ones will have completed.
Say your portfolio is 20 loans ten of which are good, ten of which are defaults. As the final good one repays you will be left with the ten defaults. Your returns will decrease all the way down.
I agree returns have been unacceptable which I why I too am withdrawing repayments.
It depends how you do the calculation. If you write-off the defaults as defaulted (as Zopa's account does), then returns will probably turn up as a proportion as the balance will be zero or very low and repayments may still trickle in from defaults. It is only if you continue to look at the full outstanding balance that the returns are bound to reduce.
The profile of defaults has been discussed before. Platforms have suggested tht these tail off later in the loan terms, but they have never specified whether that is in proportion to the outstanding balance or in absolute terms. If the latter, as the balance will have declined, the impact might still be reducing percentage returns. However, in practice the non-recognition of defaults for the opening 4 months means that net returns (interest less defaults) on these will always decline once defaults start to be recognised. As a result, turning off relending will remove these higher returns and so reduce the average.
Just opened a three-year fixed account with Gatehouse and I plan to transfer into it the proceeds from an account with another bank that matured today. My on-line application went smoothly. Both the email acknowledgement and then the snailmail one that followed stressed the need when remitting electronically to "correctly quote the reference" I'd been given, which consisted of a 13-character account number concluding with the first three letters of my surname followed by my surname in full. I have a double-barreled surname that runs to 16 characters, including the hyphen, and there's only room for six of these in the box on the High Street bank's on-line banking payee page. Hopefully that will be enough for my money to find its way to the correct place. A significant number of investors must have surnames of more than six letters ...