Performance of the Zopa markets to date
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| Total lent | £38,644,000 | £23,234,000 | £7,028,000 | £6,682,000 | £3,931,000 |
The marketplace as a whole was experiencing more bad debt than expected on loans issued 2 to 3 years ago, but this has now been brought within expectations on loans issued during the last two years.
This breaks down across the markets as follows:
| Total lent | £12,585,000 | £10,221,000 | £1,700,000 | £1,374,000 | £0 |
The A*36 market saw more bad debt than expected on loans issued 2 to 3 years ago but has performed well within expectations on loans issued since then.
| Total lent | £1,499,000 | £1,031,000 | £132,000 | £0 | £0 |
The A*60 market was launched in October 2007 (hence no data for the oldest tranches). One loan has recently fallen into default and another has fallen into arrears to exceed bad debt expectations over the last 12 months, but all other loans in this market are performing well.
| Total lent | £7,964,000 | £3,306,000 | £1,645,000 | £3,296,000 | £3,594,000 |
The A36 market has been performing well over older tranches, but in line with the general marketplace, loans issued 2 to 3 years ago bad debts have been higher than expected. Performance on more recent loans has recovered considerably, but the decision was nevertheless made in July 2009 to increase lifetime bad debt estimations for this market from 1.4% to 1.6%.
| Total lent | £5,082,000 | £1,842,000 | £525,000 | £54,000 | £31,000 |
The loan volumes disbursed to the A60 market up to the end of 2007 were small. Unfortunately two of these loans issued more than 3 years ago fell into Default and have had a disproportionately large effect on their tranches. Loans issued 1 to 2 years ago then follow the trend of the wider marketplace with bad debt slightly higher than expected, but Arrears and Defaults over the last 12 months are better than expectations.
| Total lent | £3,671,000 | £1,852,000 | £1,047,000 | £1,418,000 | £303,000 |
In line with the wider marketplace, the B36 market has seen slighly higher than expected bad debts on loans issused 2 to 3 years ago. And although performance over the last two years is much improved, the decision was taken in December 2009 to increase lifetime bad debt expectations for this market from 3.0% to 4.5%.
| Total lent | £3,482,000 | £1,503,000 | £612,000 | £113,000 | £4,000 |
The B60 market has seen higher than expected bad debts on loans issused 2 to 3 years ago and although it is performing within expectations on loans issued since then, the decision was made in December 2009 to increase lifetime bad debt expectations for B60 from 4.0% to 6.0%.
| Total lent | £1,284,000 | £827,000 | £640,000 | £380,000 | £0 |
Loans issued 1 to 2 and 2 to 3 years ago in the C36 market have shown higher than expected bad debts, but loans issued in the most recent 12 months are performing well within expectations. Nevertheless, the decision was made in July 2009 to increase lifetime bad debt estimations for this market from 6.0% to 8.2%.
| Total lent | £1,195,000 | £1,276,000 | £720,000 | £47,000 | £0 |
The C60 market was launched in September 2006 (hence no data for the oldest tranche). On loans issued 2 to 3 years ago, bad debts have been significantly higher than expected, although more recent loans are now performing well within expectations. The decision was made in July 2009 to increase lifetime bad debt estimations for this market from 8.0% to 11.0%.
| Total lent | £1,323,000 | £882,000 | £8,000 | £0 | £0 |
The Y36 market was launched in July 2008 (hence no data for the older tranches). The Y36 market has seen higher than expected bad debts on loans issused 2 to 3 years ago and bad debt on loans issued 1 to 2 years ago has also slightly exceeded expectations. The decision was taken in December 2009 to increase lifetime bad debt expectations for this market from 5.7% to 7.9%.
| Total lent | £560,000 | £493,000 | £0 | £0 | £0 |
The Y60 market was launched in July 2008 (hence no data for the older tranches). This market is performing in line with expectations, but it is prudent to assume that bad debt development in the Y60 market will broadly mirror that of the Y36 market, so the decision was made in December 2009 to increase lifetime bad debt expectations for Y60 from 7.6% to 8.1%.