38% Market rate Adjustment (Z)

The size of MRAs will depend on the difference between the nominal rate on the loan and the rate you could get on a similar loan in today's market. Since it is essentially up-front interest, the longer a loan has left to run the bigger the MRA will be.

I have not sold any loans but I have recycled repayments. There was a time, early in the pandemic, when virtually everything I picked up was a second hand loan with significant MRA adjustments attached. Since new lending restarted I've had hardly any MRA payments so I'm surprised if sellers are being charged at all at the moment (I'll check recent acquisitions when I get home).

In any case, this example does seem very high and I'd ask for an explanation if I were you.

I'm curious where/how you might see MRA payments coming in. Prior to the Feb change of system one was able to see the MRA payments going out when selling but i'm not sure there was anything in statements data for incoming MRA but i've checked in my statements and its not possible to see anything in the the new statements that i can see. (I haven't checked all new statements back to 2015 for all our accounts though.  

Edit: I've had a play now with Mrs aju's newest ISA Loans now that we both have turned on re-lend since the last week of July. It looks to me like she has benefited from some MRA of about 50p across 5 new loans. The largest MRA amount was 28p against a £5 Plus loan she got today (13/8) for a cost to her of £4.72 with an interest rate of 15.21% (The loanbook fields I used were Transaction Price, Transaction Date and Amount invested. The interest outstanding today was £2.04 and its a 5 year car loan)  

I checked out the info in the earlier loan books and not sure that I can backtrack to see how much we might have received over the years. Sadly pre feb changes version of loanbook had these fields and a full set in the alltime loanbook but they do not look quite so useful with quite a few loans having been removed from the new loanbooks its hard to backtrack accurately I think.

I'm happy to be corrected on the fields i used to check the MRA amounts though.

Yes trium you are right I had not realised this was available in the new loanbook having tried to understand it when they introduced the fields last year I think - they kept adding new fields that trashed my loaders until they completely removed older fields and dropped a number of loans that were in their eyes no longer useful for the new reduced loanbook.

On the the loans being removed after 12 months that's an interesting thought. When the system changed over I spent a considerable amount of time with Zopa trying to line up the old and the new with a view to still maintaining the full loanbook.  I gave up comparing as they are still in quite a state of change and still not getting it right in the statements area at least. The loanbook does not appear to have changed since the updates but I've not been monitoring it very closely until now that we are re lending again.

They provided me with a translation for all my loans of a fashion (it took Zopa 4 attempts to actually get some useful data that was not in error) even so I still had to do quite a lot of data connections in excel to eventually get a full and accurate connection table of old and new loan/borrower ID's). Whilst i was doing all this it soon became very clear that during the the conversion good loans had seemingly gone missing completely from the new loanbook even though they had not seemed to complete in the old ones prior to the Feb "big bang" uplift. It turned out that Zopa had some issues with the initial rebuild attempt hence the delay of a week too. In the end I was able to get them to accept and admit there was an issue with some loans having been removed completely from the new data as a result of the need to remove all the completed loans up to a given date etc (Their words not mine).

I had 6 loans that were completely wiped away 1 was settled and 3 had in fact completed during the delay period and hence were not transferred and were not showing as complete in the older alltime loanbook data either. I managed to create a number of issues from my old statements detail and see that some were nowhere near complete but Zopa loanbook said they were finished and so removed. eventually I had to create a list of issues for our 4 accounts of the lost loans so they could advise what had actually happened. From a large number of email discussions, sadly not in emails, i'm pretty sure they are not removing loans now it was just an opportunity they had taken to do as part of the changeover in February without taking note of 7 day slip due to the initial failed upgrade attempt.

I am curious where you may have got the notion of 12 months before removals of completed loans yourself was it a comment from Zopa or is it just a theory you have. Mind you I did find that in my first dealings after the rebuild in Feb there were a number of Zopa customer service people just trying to fob off issues etc so much so that I now deal with a much higher person than normal customer service - I nearly got as far as Natasha Weir at one point. I've stopped comparing now and i'm not sure that loans are now going missing at all but I haven't checked since i was told the lost good loans were a mistake on Zopa's part ( I was able to get legitimate answers for all the loans that affected our 4 accounts).

My personal feeling is there was great merit in having all loans data from day one and i'm sure that Zopa has this still as financial requirement but hey its gone now from the perspective of the pre big bang visibles we now have

. 

I agree about hijacking the thread but just from our perspective on loans being lost since the feb update. Not sure if it means much but I've just checked Mrs Aju's ISA loans, she has way more than i do, and after processing out the new ones she has picked up since she started re lending this year. She has sold a lot of loans since Feb but checking the newest loanbook after the feb changes against the old loans in yesterdays loanbook she has the same number of loans so unless they are waiting for a 12 month cycle from whence they changed over then the loans are not being removed as far as i can tell so far. It's harder now to see when a loan actually finishes since they removed the detailed statements - I am taking a loanbook copy as close to 23:59 on the last day of the month for each loanbook. At least i can say what month a loan completed by comparing aginst the previous and adding a Completed month field in. If we stay lending then I may find knowing month when loans finish might be of use.

I would add that since we sold many loans over the last year or so then the close date of a loan will not be great indicator for us I think (I'm still trying to understand what you are measuring exactly)

I will check with Zopa too if they have plans to reduce the loans in the current loanbook when they are completed as i can't find email where i thought they said it was a one off removal and my offline notes are a bit of a mess having been working with them for so long on so many issues.

Sorry criston for hijacking the thread.

No answer yet, but if it is a standard type patronising answer, then I will ask for calculations.

Now that would be interesting !

The loan had been in arrears.

Zopa refuses to give me their calculations.

The original interest rate was 2.39% AER

The remaining term of the 5 year loan was 17 months to 19/1/23.

So 38% divided by 17 months = 27% pa added to 2.39% = 29% rounded.

So the new buyer should have received 29% if my figures are correct.