Unbolted – 6 Month Results

6 Month Results

The first half year results for lending through the Unbolted platform are as follows  –

Expected ROI (Annualised) 7.20%
Actual ROI (Annualised) 8.90%

The ‘Expected ROI’ is taken from the Unbolted website. The ‘Actual ROI’ at 8.90% is obviously significantly higher than expected. This is for one main reason the ‘Expected’ takes in to account a sensible level of defaults whereas the ‘Actual’ is taken from the ‘Interest Earned and Accrued’ figure in the account. Now some people factor in a predicted default rate in to a portfolio, I’m not personally a fan of this technique as a requires a crystal ball and it can quickly become very confusing and complicated subtracting and then later adding figures to a rolling portfolio. So I view the Unbolted figure with a certain degree of reduced expectation.

Unbolted chooses not to publish up to date statistics so it’s difficult to know how the loan book is doing in terms of growth, but with a £5.00 minimum loan part allowing for easy diversification I’ve had no problems with new funds being assigned (with-in a few days) over the last 6 months. A note of caution though, Unbolted has a very narrow borrower clientele, indeed many of the loans are provided against chatel to a single action house. So the true diversification level can be a little opaque with Unbolted, something to consider when working out your own risk appetite.

Conclusion

I’m happy with my Unbolted experience so far. Unbolted seems to run a tight ship with decent quality loans following a rigorous due diligence process. Although no defaults have been realised in my first 6 months I do expect this to change over the coming months as defaults are always to be expected when lending.

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