aju
Member of DD Central
Posts: 3,500 
Likes: 924
|
Post by aju on Apr 4, 2020 11:20:20 GMT
|
|
benaj
Member of DD Central
N/A
Posts: 5,591
Likes: 1,735
|
Post by benaj on Apr 4, 2020 12:09:27 GMT
Every P2P platform is unique, but most of them can't escape the effect of this Covid-19 Pandemic. Zopa is a stable platform and its returns still beats some poor FSCS saving accounts or even premium bonds.
|
|
bramhall17
Member of DD Central
Posts: 88
Likes: 148
|
Post by bramhall17 on Apr 4, 2020 12:41:30 GMT
I agree Zopa is in a better state than many, as it transitions to offer banking services. However, the only 'stable' thing about my returns in the last 6 months is that in most months the returns are marignally negative because new defaults are greater than the interest payments. I can only see this increasing as we go through this crisis. It would be better IMO to have a formal 3 --4 month payment holiday rather than seeing borrowers just arbitarily defaulting.
|
|
Greenwood2
Member of DD Central
Posts: 4,376
Likes: 2,780
|
Post by Greenwood2 on Apr 4, 2020 13:23:44 GMT
I agree Zopa is in a better state than many, as it transitions to offer banking services. However, the only 'stable' thing about my returns in the last 6 months is that in most months the returns are marignally negative because new defaults are greater than the interest payments. I can only see this increasing as we go through this crisis. It would be better IMO to have a formal 3 --4 month payment holiday rather than seeing borrowers just arbitarily defaulting. My NAR is a bit over 4% (plus there is tax relief on defaults) a bit low on their target but not too bad. I'm surprised so many lenders say they get negative returns month after month, I think I had one negative month, but all the rest have been well into the positive. Is it just people withdrawing funds and being left with non performing loans that are getting a lot of negatives, or am I incredibly lucky? I have a cash and ISA account and manage another account (the other one is doing rather better than mine).
|
|
aju
Member of DD Central
Posts: 3,500
Likes: 924
|
Post by aju on Apr 4, 2020 14:29:37 GMT
So our NAR stats are as follows ..
Product NAR ETD (£) NAR Start Date:
---------- ------ -------- -----------
Core 3.68% 128.99 Jan 2018
Plus 4.97% 152.60 Jun 2016
ISA Core 3.64% 1958.91 Jul 2017
ISA Plus 4.13% 521.87 Jul 2017
Mrs Aju's are ..
Product NAR ETD (£) NAR Start Date:
---------- ------ -------- -----------
Core 4.63% 243.53 Jan 2018
Plus 4.44% 216.16 Sep 2016
ISA Core 3.72% 1697.57 Jul 2017
ISA Plus 3.79% 306.55 Jul 2017
For the most part we had Core/Plus 80/20 splits and in non PF cover we staggered lending to limit loans to £10. Over the last 12 months or so defaults started to rack up quite heavily. I have had 4 fully negative months in Invest but there was only one negative month before I made a large sale earlier in 2019 - Apart from 1/2 Core/Plus loans I only have PF loans 9in Invest.
In ISA side the defaults are there but no negative months in my loans. That said the returns were down but again we made a 5 figure sale in June to move funds to RS. This has increase the hit such that returns were down 75% compared to the previous year.
All in all we're still very much ahead but as Mrs Aju has very itchy feet at the moment and so we played for Sell out, apart from PF covered Classic Loans. Just looking at my ISA comparing this year to last year. Then last year we had a 70% return from interest received and this fin year we only had 30% after defaults. Put another way defaults lost me 30% of interest in 2018/19 and 70% loss of interest this year. Thats not including my early adopter 0.5%. Mrs Aju faired slight better than me in ISA's.
One interesting point also is that having made a loan sale in mid June 2019 the defaults did start to increase but in the last 3 months they do seem to be falling back again so Zopa's idea that selling loans causing defaults to look worse until relending is compensating looks to be failry close to the mark.
As many are eluding to though the quite large increases in arrangements in the last week and a bit are going to materialise into later defaults might be an issue going forward. Hopefully my sale will come before that occurs. I will say though that the loan sale is at quite a cost now that the new MRA > 4% is a big effect.
|
|
