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.

Unbolted – An Introduction

Introduction

Unbolted is a P2P platform established in 2013. Unbolted is a trading name for Open Access Finance Ltd . The platform offers borrowers four types of loan : a personal asset bridge loan; a sales advance loan; a bid now, pay later loan and a small business loan. From the lender perspective these loans fall in to three different protection levels : ‘Gold Trust’ insures lenders against a drop in gold price for loans secured against jewellery and watches ; ‘Provision trust’ used against most other loans types designed to be used in the event of a short fall in repayments to a lender (at the discretion of Unbolted) ; occasionally Unbolted offer unsecured loans usually to know and trusted borrowers.

For the most part Unbolted is an Auto-Invest platform. You pick which of the three loan types you want to invest in, deposit a minimum of £100 and diversify for as little as £5 per loan, click confirm and Unbolted will do the rest. Interest is accrued daily with an advertised annual return rate of around 7.2%.

The main account page

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Main account page for Unbolted

The account page is basic and I like basic.

Loans On Sale box – if you click the buy now button you will see any loans you can manually buy in to now. However these tend to be quite rare as most will opt for the ‘Auto Invest’ function which fill loans very fast. Be careful though as the available loans may well be ‘Unsecured’ loans that are less popular for ‘Auto Invest’. I’m not suggesting these loans are of any less quality but they will require reading on your part to work out if you are personally comfortable with the risk/reward on offer. The ‘Auto Invest’ button allows you to adjust your ‘Auto Invest’ preferences at any time as discussed previously.

Add or Withdraw Funds box – deposits via bank transfer, usually 2 working days to clear, minimum of £100. Withdrawal of ‘idle’ funds is immediate (24 hour bank processing) but withdrawal of assigned funds will require your loan parts to be sold/transferred first. Make sure you pause ‘Auto Invest’ first otherwise your funds will just go round in circles. Selling of loan parts is conditional to market availability of buyers, generally allow a few days per £1000 being sold.

My Portfolio box – shows your live headline figures. ‘Cash balance’ is idle funds and withdrawal-able at any time. Investment balance is the total you have assigned to live loan parts. ‘Total Portfolio Value’ is the two figures combine. You can also ‘View Portfolio’ and this will list every loan you are currently invested in. It includes details like loan type: start date; due date; last repayment date; loan status and loan part size.

My Returns box – shows you total platform deposits against your total interest earned to date.

My Recent Investments box – gives you a snapshot of your last five loans you invested in. You can view the full list by clicking ‘View Portfolio’.