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Post by graemec23 on Mar 31, 2016 8:39:53 GMT
I've currently got 90pounds lent out at an average of 9.0% including part of this 24.5% loan!
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spiral
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Post by spiral on Mar 31, 2016 9:33:37 GMT
I wonder if this is a loss leader to try and tempt more money in. It'll be interesting to see how many more come out in to 20+ bracket!
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Greenwood2
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Post by Greenwood2 on Mar 31, 2016 9:40:03 GMT
I've got a couple in the +3.0% bracket  |
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happy
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Post by happy on Mar 31, 2016 10:18:12 GMT
It's my first Z+ loan showing as 'withdrawn' so I expect he (she?) has been down to B&Q already with the money. Maybe you'll get a 25% soon, so don't despair! Personally I would be fairly nervous about being randomly allocated part of a loan to someone who I know nothing about and who is prepared to borrow money at 25% plus fees etc without me having any safeguard or asset security. I never felt willing to trust FC autobid even with A+/A loans so Zopa+ is an absolute no no for me purely on the basis of it's unknown capital risk profile. I think I will stay with Zopa Classic while the interest rate stays around 5% and then wind down.
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Greenwood2
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Post by Greenwood2 on Mar 31, 2016 10:26:34 GMT
Seems like there's a wide range of rates on the Z+, and they are expecting quite high losses to get to their predicted rate. I'm not putting my shirt on it, only a bit of 'mad' money and see where it is in a year's time.
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happy
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Post by happy on Mar 31, 2016 11:09:16 GMT
Good shout actually greenwood2 Maybe a little Z+ investment then, "in the interests of research"  |
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wapping35
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Post by wapping35 on Mar 31, 2016 11:38:40 GMT
Well so far I have 15 x £20 matches so £300.
They are at an average rate of 9.4% with a projected post default rate of 6.2% (so a little short of the 6.5% so far, but only around 10% of my deposit is lent so v early days). Effectively 3.2% of the return goes to my own personal SG fund (well that is how i am visualising it), to be expected to be lost on future defaults.
Of the 15 I have :
One E at 24.5% & two D's @ 20.70% & 16.48%.
So 3/15 are D&E's which is 20% so a little below the 30% D&E, Z have said the ultimate portfolio should look like.
I note also several C1 & B's at around 9%.
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Post by newlender on Mar 31, 2016 11:55:17 GMT
The temptation will be for those in real need of a decent income to be tempted to put a lot into Z+. I have about 15% of my Zopa money in Z+ and the rest in ZC, which I reckon is about right. (That's about 15% of my total investment portfolio in total). Although the web pages outline the risks I wonder if some extra 'OK' tick box is needed to verify that the lender is aware that some money will be lost.
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Post by newlender on Mar 31, 2016 12:01:13 GMT
Interesting to see why the D and E borrowers need the cash. One of mine wants to pay a tax bill and another needs to pay off credit cards.  I wonder what the 'purpose of loan = other' encompasses. |
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wapping35
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Post by wapping35 on Apr 1, 2016 13:22:42 GMT
Just got another E (36 mths) at 24.80% so just north of the 24.50% (12 mths).
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Post by blanik on Apr 1, 2016 14:30:42 GMT
Has the wording changed on the Zopa Plus lending summary?
I thought it used to say something like "estimated/expected? return after bad debt", so mine was something like 10.0% gross and 6.2% after.
I now have 10.2% gross on 19 loans, but it now says "Projected return of 6.5%" - so is that the Zopa forecast return, or the return based on my loanbook? Does everyone else have exactly 6.5%?
One of my last loans was the E at 24.8%, so that may have been enough to pull my projected return up to the target.
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Greenwood2
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Post by Greenwood2 on Apr 1, 2016 15:05:57 GMT
That's based on you're current loans, mine is well under the overall projection of 6.5%, looking for a few biguns.
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Post by newlender on Apr 2, 2016 6:47:09 GMT
I have three loans at 24.5% (out of a current total of 21 Z+ loans) . There are clearly people out there who will pay these rates for a short while. |
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kaya
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Post by kaya on Apr 3, 2016 11:34:30 GMT
Let me get this straight. You put in your £1000 (minimum), and then wait to see what loans at what rates come out of the hat, with no control whatsoever over the results, so you might get lots of 9% loans, or up to 25%, or whatever, and your overall gross rate might vary wildly. Is that how it works? What risk bands are there? How long would you expect to wait to see your 1G invested? Is your loanbook averaged out across risk bands?
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Post by Ton ⓉⓞⓃ on Apr 3, 2016 11:52:53 GMT
Let me get this straight. You put in your £1000 (minimum), and then wait to see what loans at what rates come out of the hat, with no control whatsoever over the results, so you might get lots of 9% loans, or up to 25%, or whatever, and your overall gross rate might vary wildly. Is that how it works? What risk bands are there? How long would you expect to wait to see your 1G invested? Is your loanbook averaged out across risk bands? Z gives you many different small loans with an effective blended rate of 6.5% projected after losses for ZopaPlus. With the former product some time ago now some Lenders did complain that they were short of the projected target, I was always about spot on or there about. If the economy does okay or even well I hope to better the 6.5%. I'm testing it myself like everyone else.
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I wonder what the 'purpose of loan = other' encompasses.
