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Post by Deleted on Nov 30, 2016 12:56:21 GMT
I am going to refer my partner to Zopa which gets us both £50 for a £2000 deposit, 5% for 1st year before interest  My query is what are peoples thoughts/experience of the Plus market compared to similar risk loans on other P2P sites? I have only used the Access and Classic which are covered by the Safeguard, assuming Zopa suitably diversify my deposit I'd be personally confident in the Plus market providing a reliable return. |
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kevinkelly
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Post by kevinkelly on Nov 30, 2016 19:54:43 GMT
I have only used the Access and Classic which are covered by the Safeguard, assuming Zopa suitably diversify my deposit I'd be personally confident in the Plus market providing a reliable return. Here's a couple of figures from my own loan book... Safeguard loans Missed payments £2.23 9 borrowers (1.4%) have missed payments for safeguard loans. Non-Safeguard loans Missed payments £0.00 0 borrowers (0%) have missed payments for non safeguard loans. The theory here is that Non-Safeguard loans are riskier, therefore higher rates are paid. The reality appears to be that Non-Safeguard loans are less risky, but we still get higher rates. Now of course this might all change. Defaults might occur. Meantime, the sun is shining, and I'm making hay.
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amphoria
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Post by amphoria on Nov 30, 2016 22:59:37 GMT
You're lucky. My Zopa Plus looks like this:
Missed Payments
£8.38
13 borrowers (3.2%) have missed payments for non-safeguard loans.
This also excludes one default as the defaults are removed from the statistics when they are written off against the interest payments. Over the next couple of months I am expecting another 5 loans to default.
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Post by ogwellian on Dec 1, 2016 10:12:44 GMT
In hindsight I wished I had invested in smaller chunks. I put in £6,000 in one go on one occasion which bought £60 chunks, Now I only put in enough to buy £10 pieces.
I had three defaults one month, that wiped out all but £1 of my interest. All three loans didn't have a single monthly repayment. I would have been happier losing £30 rather than £80.
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pip
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Post by pip on Dec 1, 2016 17:37:28 GMT
Mine looks like:
Missed payments
£14.67
9 borrowers (2.1%) have missed payments for non safeguard loans.
I guess the longer you have been lending the more the number will go up.
I have also found that just because a borrower misses a payment doesn't mean they will go on and default. When I look at my loan book I have had quite a few that paid a month late but are back on track.
I guess so far the defaults are about on track.
One thing to remember that the value number above is missed payments, not the outstanding principle on late loans. So if a £60, 60 month loan misses it's first payment the amount will show as £1, when really you have £60 in jeopardy.
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Post by hedgecarpenter on Dec 5, 2016 21:24:13 GMT
Missed payments
£11.94
7 borrowers (6.5%) have missed repayments for non-Safeguard loans.
Four borrowers are getting perilously close to default!
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Post by Deleted on Dec 6, 2016 11:10:13 GMT
Appreciate all the input although a little in vain currently as Zopa have put a block on new money. Trying out a new platform (for me) in Bondmason instead!
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marie
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Post by marie on Jan 3, 2017 16:41:10 GMT
Are you guys receiving any payments on defaulted loans? Is it just a waiting game and the loans will stay there until the borrower finally decides to get their finances in order?
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ashtondav
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Post by ashtondav on Jan 4, 2017 12:09:33 GMT
Missed payments £11.94 7 borrowers (6.5%) have missed repayments for non-Safeguard loans. Four borrowers are getting perilously close to default! Yes, but what return are you getting? I rather suspect that until + has been going a year or two no one will really know what can actually be achieved in plus. I would suspect, even if it underperforms the projected return, it will be higher than Classic. IMO diversification is essential and i certainly wouldnt want less than 100 loans, so a maximum exposure to any one loan of 1%. Do/will ZOPA publish the actual achieved performance? BTW you can add money at the moment, I think.
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Post by yorkman on Jan 4, 2017 22:27:17 GMT
In hindsight I wished I had invested in smaller chunks. I put in £6,000 in one go on one occasion which bought £60 chunks, Now I only put in enough to buy £10 pieces. I had three defaults one month, that wiped out all but £1 of my interest. All three loans didn't have a single monthly repayment. I would have been happier losing £30 rather than £80. What's the maximum to invest then at any one time to ensure only £10 chucks allocated?
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ashtondav
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Post by ashtondav on Jan 5, 2017 15:10:52 GMT
£1,000 certainly gets lent out in £10 loans.
still interested in what rate peops are actually achieving in +. Seems no one knows?
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ali
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Post by ali on Jan 5, 2017 15:25:57 GMT
£1,000 certainly gets lent out in £10 loans. still interested in what rate peops are actually achieving in +. Seems no one knows? I started mid-July and currently have a cash yield of 8.17%. Since my loans only started to default in December (because of how long it takes for Zopa to decide that a loan is in default), I would expect this yield to continue to drop as the months go by. I define cash yield as including cash waiting to be lent and valuing each loan as it's principal (ie., ignoring both the accrued interest and the probability of default).
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Post by BrianC on Jan 6, 2017 0:35:31 GMT
It's not about how much you put in at a time but how much you have invested in plus in total. From their website:
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ashtondav
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Post by ashtondav on Jan 6, 2017 10:15:57 GMT
I have £50k in zopa. They don't lend my £1,000 deposits in £500 chunks.
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wapping35
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Post by wapping35 on Jan 6, 2017 13:52:28 GMT
From my experience the lending chunks tend to reflect 1% of your "Matching to Borrowers" maximum amount (rounded down).
So if you had £5,5k Matching to Borrowers you get £50 chunks until that amount is lent (i.e. it does not fall to £40 when the balance goes below £5k).
So if you want £10 chunks you need to try to keep the matching to Borrowers number below £2k.
In addition to the above I have noticed (I have a sizeable Total Zopa amount invested) that my minimum chunk size irrelevant of the matching to borrowers number is £30. But that £30 does not remotely reflect 1% of my Total Zopa invested amount. It does however seem that the "Zopa Total invested" does come into play for larger Total Investment levels (but it is not 1%).
W35
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