Zopa selling appears slow at present

Z did not sell the whole loan part. The loan part was split up and the new acquired part is just leftovers of the original chunk you acquired. 

Reply from Zopa, as we could of expected.

'When a sell request is processing, we will attempt to sell as much of your healthy loan as possible during a 30-day window. Unfortunately, I will not be able to indicate when your remaining loans will be sold as this could be due to several reasons. At Zopa, we must ensure that all loans sold on the secondary market appropriately matches the portfolio of other investors on our platform, which is the most likely the reason. An alternative reason could be that a payment is still processing on a loan. Any loans that have a pending payment processing, won’t be sold until the payment has been completed. A final reason is that some of your loans may have gone into arrears, which will mean that these loans will remain unsold.

There is still a week left to go on your sell request, please continue to remain patient as we process your request. When your sell request does complete, we will inform you of how much of your loans we managed to sell. If any loans weren’t sold this time round, please feel free to initiate another sell request'

I'd be happy to get a whiff of a sniff, myself and Mrs aju put in requests in middle of march and have not had one sale as yet. We are getting quite a bit of returned funds that I am sending back to my bank every couple of days or when it reaches 3 figures.

Perhaps Zopa is using my computer as well to run the website - no sorry my computer is running much more efficiently than the website - which seems to timeout more than it succeeds the more useful functions. (ISA partition seems worse than the Invest, thankfully I know how to use a web browser rather than having to keep logging in when Zopa's cookies gets confused after timeout failures.) 

 

These numbers and indeed the projected returns are completely misleading and I have directly said that to Zopa given the new MRA deductions reflect the higher expected defaults, but the projections remain pre-lockdown figures...i.e. On average a 3.6% hit.., so really those numbers should be 2.5% and 3.1%....

That is they are projecting higher defaults for loans we sell, but not if we don't sell the exact same loans.

This is especially true for the SG /Zopa Classic loans which I sold last week with significant MRA's. I pointed that out to Zopa and they said the SG fund was not designed to cope with the present circumstances which I then went back to them to ask if that is the case why are they not communicating that, i.e.  why are they not projecting a SG interest rate hair cut for existing SG investors, when they are doing so for investors who sell the exact same loans? 

Apparently they are working on new projections for existing portfolio's .. That is what the CEO is very vaguely referring to in his email yesterday when he wrote "Over the coming weeks we will have more data on the overall trend in loan performance".

I would add I also was cheeky enough to suggest they share some of the pain and take a lender fee reduction for these existing LB loans (i.e. the 0.6-1% monthly interest rate deduction fee they get), no response on that albeit I was told the feedback was passed on (to the bin no doubt).. Ho ho...

W35

 

Zopa loans have been competitive in the past, but now it is apparent their rates are higher than AA (3.1% APR).


Latest typical loan offer is 8.7% APR from Zopa


money.gocompare.com/loans?gcclickid=39c43fac-4a5d-4de8-b238-4883e74b64a0#/

May be Zopa is returning to the good old days like the pre-safeguard loans. 6%+ return for lender with low default rate. 

This second picture shows how the period 14/3 - 31/3/2020 shows a very marked drop in lending.


All data is as found in the Zopa Public data as found ending 4/1/2020