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Post by veronica on Apr 5, 2021 15:16:38 GMT
Have you found anywhere the actual origination and loan servicing fees that Zopa charges?
Have you come across any indicative numbers and comparables? I struggled to find this information, transparency seems to be a challenge.
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toffeeboy
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Post by toffeeboy on Apr 6, 2021 11:24:54 GMT
Have you found anywhere the actual origination and loan servicing fees that Zopa charges? Have you come across any indicative numbers and comparables? I struggled to find this information, transparency seems to be a challenge. I believe that Zopa charge 1% interest on their loans as a loan servicing fee with no upfront fees but could be wrong.
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Greenwood2
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Post by Greenwood2 on Apr 6, 2021 14:42:08 GMT
Have you found anywhere the actual origination and loan servicing fees that Zopa charges? Have you come across any indicative numbers and comparables? I struggled to find this information, transparency seems to be a challenge. I believe that Zopa charge 1% interest on their loans as a loan servicing fee with no upfront fees but could be wrong. No fees to lenders, fees are taken at the borrower end. Borrower fees are variable depending on risk, you would probably have to apply to get your personal quote. I think they give some typical APRs. 'Representative Example A loan of £10,000 over 5 years will cost you £234.99 per month at a representative 15.4% APR. The total cost after 5 years is £14,099.54, which includes £4,099.54 interest at 15.4% fixed and a £0 fee. The total amount of credit is £10,000. The rate you are offered will depend on your individual circumstances.' Edit: If you are a lender you can see the servicing fee for each of your loans in the loan book download. It seems to be quite variable.
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Post by veronica on Apr 6, 2021 19:36:38 GMT
It's interesting! They market it as "no fees to the lenders", but in the end, this is money that comes from the borrower due to my capital. So you could argue that I am the one paying those servicing fees anyway! Unless they charge more the borrower than market rates.. which I doubt.
I am trying to figure out which P2P platform I will use and I would like to understand what is the "cut" that they take. It is fascinating that such fees are kept secret.
I found the comment that you included above, about ranging fees depending on risk. Could you share some insights in terms of how much those servicing fees range??
Many thanks!!!
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shw
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Post by shw on Apr 6, 2021 20:19:49 GMT
If it helps 2020/21 tax year net interest to pay tax on is about 4.6% after all costs and defaults.
Zopa is now the only P2P I trust having been,still being,burnt on other platforms.
They have tightened up on borrowers since COVID so it can take a while for money to be loaned out.
Why don’t you go through process of opening an account to verify T & C’s,fees etc.
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Greenwood2
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Post by Greenwood2 on Apr 7, 2021 9:00:45 GMT
It's interesting! They market it as "no fees to the lenders", but in the end, this is money that comes from the borrower due to my capital. So you could argue that I am the one paying those servicing fees anyway! Unless they charge more the borrower than market rates.. which I doubt. I am trying to figure out which P2P platform I will use and I would like to understand what is the "cut" that they take. It is fascinating that such fees are kept secret. I found the comment that you included above, about ranging fees depending on risk. Could you share some insights in terms of how much those servicing fees range?? Many thanks!!! Zopa used to charge lender fees, but we got taxed on the interest before the fees were taken so you were paying tax on the fees, to avoid that they moved all fees to the borrower side. The loan servicing fees are not exactly secret since you can see them in your lender loan book along with the borrower rate and the lender rate, glancing at my loan book there doesn't seem to be a simple correlation to any one thing. Being related to risk would be logical if you are more likely to have to chase the borrower for payment (which costs money) lenders also get higher rates for riskier borrowers. I suspect the fees are also related to length of loan and also vary with time, ie, I think they have gone up along with the tightening of lending criteria in the current uncertain times (and higher rates to lenders with more defaults anticipated). You could ask Zopa, but their lending algorithm is probably 'valuable' intellectual property.
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aju
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Post by aju on Apr 12, 2021 8:22:41 GMT
Zopa has been reinventing their visible platform since mid feb. As someone who has loans that were subject to loan fees before may 2015 that used to show the 1% (0.5% for early adopters) fees but the recent changes to online statements does not detail them correctly. Even the statement subtotal does not add up correctly for jan thru april 2015. The overall balance numbers look correct though. Sadly zopa has lost some of our loans that allegedly completed in the recent changes. They seem to think its acceptable for them to be removed from the loanbook without knowing their closed status. I'm pushing quite hard with them on this at the moment!  |
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