Summary of Unbolted’s Loan Performance

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Unbolted Highlights:

  • Approximately 2800 loans, with a cumulative loan amount of £17.4 million, have been repaid or renewed.
  • Another 293 loans with a cumulative loan amount of £950,000 have defaulted. This equates to a default rate of 10% by number and 5.5% by value.
  • Of these defaulted loans, recovery has been completed on 253 loans with a recovery rate of approximately 117% to lenders. The actual sale proceeds are much higher with surplus returned to the borrower in many cases.
  • Many more loans, although not defaulted, have been repaid through the sale of assets under the instruction of the borrower. For example, 51 loans made as pre-auction advance have been repaid from auction proceeds and some of the high-value loans have been repaid through organised sales to dealers.

Details: Based on risk measure, we broadly categorise our loan book into four types:

  1. Consumer loans made against gold. These are the easiest to value and dispose in default. They are also the easiest for risk management purposes as the value of the underlying collateral can be hedged.
  2. Consumer loans against non-gold assets. These loans are typically lower value and risk on these loans is managed through a combination of diversification and careful underwriting.
  3. Loans made to business and high net worth customers. These are typically higher-value loans and are carefully underwritten, with additional due-diligence conducted on value and ownership of assets. From a risk perspective we consider these loans to be lower risk than equivalent consumer loans, as all such loans also benefit from full recourse to the borrower as well as regular monthly interest payments.
  4. Loans made to watch dealers. These are longer-term loans provided to dealers of second-hand watches against a part of their stock, valued at trade disposal prices and held in our possession. By now, we have an established trading history with all our watch-dealer borrowers. You can read more about watch-dealer loans here.

Please see below performance tables presented by above loan categories. Although there has been almost no default with our higher value loans, we have had a number of cases where under the instruction of the borrower we have sold the asset to repay the loan. In all such cases, there has usually been a surplus payable to the borrower.

By number Loan value Active and performing Repaid or Renewed Defaulted and recovered Defaulted and awaiting recovery Default (%)
Consumers Loans against Gold               184               843                 59                   3 7.4%
Consumer Loans Non-Gold £25k or less               368            1,758               194                 36 13.1%
£25k+                   9                 56                  –                   1 1.8%
HNW and Business Loans                 18                 68                  –                  – 0.0%
Watch Dealer Loans                 19                 82                  –                  – 0.0%
Total               598            2,807               253                 40 10.4%
By value (£) Loan value Active and performing Repaid or Renewed Defaulted and recovered Defaulted and awaiting recovery Default (%)
Consumers Loans Gold        597,721     3,054,841        259,637            7,650 8.7%
Consumer Loans Non-Gold £25k or less     1,250,423     5,191,272        474,494        172,765 12.5%
£25k+        388,050     2,388,558                  –          36,072 1.5%
HNW and Business Loans     1,009,937     3,896,869                  –                  – 0.0%
Watch Dealer Loans     1,055,364     2,865,070                  –                  – 0.0%
 Total     4,301,495   17,396,610        734,131        216,487 5.5%
Default and recovery statistics
By number All recovered Full recovery Interest shortfall only Principal shortfall*
Consumer Loans Gold 59 59
Consumer Loans Non-Gold 194 149 16 27
By value (£) Principal amount defaulted Repaid to lenders from asset sale Interest shortfall Principal shortfall* Recovery %
Consumer Loans Gold        259,637        296,338 114%
Consumer Loans Non-Gold        474,494        559,633            2,059            8,349 118%
       734,131        855,971 117%

 

 

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