Zopa- advice from users
Discussion
anyone on here loaning to Zopa or one of the other p2p lending companies? if so, how have you found it and would you recommend it to a newby?
i have a small amount of cash sat in some pretty crappy isa or savings accounts and might consider £5k or £10k into something of this nature. i appreciate its not covered by the fsa in any way for your deposit, and i accept its a slightly higher risk. 3.8 to 5% return currently being promoted as expected returns etc.
not done it before, any thoughts appreciated. in theory i could tie up the money for 5 years if needed.
i have a small amount of cash sat in some pretty crappy isa or savings accounts and might consider £5k or £10k into something of this nature. i appreciate its not covered by the fsa in any way for your deposit, and i accept its a slightly higher risk. 3.8 to 5% return currently being promoted as expected returns etc.
not done it before, any thoughts appreciated. in theory i could tie up the money for 5 years if needed.
I have a small amount in FundingCircle.
It seems to work well, and their mechanisms for dealing with "problem" borrowers seem to be effective. I haven't, yet, tried to cash-out at all, but the returns certainly seem to be better than deposit accounts, cash ISAs or even the market at the moment.
It seems to work well, and their mechanisms for dealing with "problem" borrowers seem to be effective. I haven't, yet, tried to cash-out at all, but the returns certainly seem to be better than deposit accounts, cash ISAs or even the market at the moment.
marshalla said:
I have a small amount in FundingCircle.
It seems to work well, and their mechanisms for dealing with "problem" borrowers seem to be effective. I haven't, yet, tried to cash-out at all, but the returns certainly seem to be better than deposit accounts, cash ISAs or even the market at the moment.
I have about £4k in Zopa and would probably echo the above. I'm not sure how comfortable I'd be with having a huge amount more in there though and hence I've put money into some of the high interest high-street accounts and Premium Bonds instead of shoving it all into Zopa...It seems to work well, and their mechanisms for dealing with "problem" borrowers seem to be effective. I haven't, yet, tried to cash-out at all, but the returns certainly seem to be better than deposit accounts, cash ISAs or even the market at the moment.
funding circle being the business lending site as opposed to individuals etc with Zopa?
i wonder if the business loans side is possibly better on defaults than individuals, i need to spend some time reading about both tbh. there doesnt seem to be anything out there at all with decent savings rates presently. i was even toying with buying another classic car and seeing how that goes over 5 years just garaged up :-)
i wonder if the business loans side is possibly better on defaults than individuals, i need to spend some time reading about both tbh. there doesnt seem to be anything out there at all with decent savings rates presently. i was even toying with buying another classic car and seeing how that goes over 5 years just garaged up :-)
Hi - been in Zopa for about last 4-5 years - started out putting in £200 a month - but took a big chunk out which paid for my 40th birthday. So more or less reset the total around 3 years ago.
For me it's money which in the past I would have previously had a punt on shares (thank you RBS !!!
)
To give you ideas on return I've put in approx £2800 @ around £200 a month, (so say for last 14 months) seeing around £138 returned as interest (capital set to be re-lent out automatically)
TBH I'd take the slowly slowly approach - put in an initial sum - get a feel for the reports, and if you're happy - top up as/when you can want.
Maybe I've been lucky - but I've had no defaults, and max micro-loan/exposure for any 1 loan is £10 anyway ....
For me it's money which in the past I would have previously had a punt on shares (thank you RBS !!!
) To give you ideas on return I've put in approx £2800 @ around £200 a month, (so say for last 14 months) seeing around £138 returned as interest (capital set to be re-lent out automatically)
TBH I'd take the slowly slowly approach - put in an initial sum - get a feel for the reports, and if you're happy - top up as/when you can want.
Maybe I've been lucky - but I've had no defaults, and max micro-loan/exposure for any 1 loan is £10 anyway ....
200Plus Club said:
funding circle being the business lending site as opposed to individuals etc with Zopa?
Yes.They certainly appear to be taking it quite seriously with some decent risk ratings and information about levels of guarantee on the part of the borrower. We also get regular updates about late payments, possible defaults and actions being taken - fortunately very few in my portfolio.
i'm in a funny situation tbh, ive just sold a couple of cars and made a decent profit, and have about £15k i literally dont want to spend or waste just sitting in poorly performing accounts at the mo. a while back i sold a load of lloyds shares i'd bought from 64p to 29p as they crashed, and sold them for 79p. lloyds are now back in the doldrums at 64p again and i was tempted as i can see 5p a share again within 2-3years, but equally either way.
i've set up £300/month into a 1 yr account with first direct paying 6% that ends literally in 1 yr. so i have circa £12k to invest. was thinking maybe £5k into p2p and then the rest into whatever i can get ISA etc. i also have a small loan with 4k outstanding which realistically should be the first moive i make paying it off 2 years early.
or do i go with cash looking for another bargain classic and take a punt? i have a garage i can store one in if needed with no cost.
i've set up £300/month into a 1 yr account with first direct paying 6% that ends literally in 1 yr. so i have circa £12k to invest. was thinking maybe £5k into p2p and then the rest into whatever i can get ISA etc. i also have a small loan with 4k outstanding which realistically should be the first moive i make paying it off 2 years early.
or do i go with cash looking for another bargain classic and take a punt? i have a garage i can store one in if needed with no cost.
I've been both a borrower and now a lender with Zopa. My experience as a borrower led me to become a lender - despite having a relatively decent credit history they asked lots of questions and took a more personal look into my finances, certainly more than any bank ever has when lending me money. This reassured me that as a lender my cash would be relatively safe. As mentioned above you can limit your exposure to individual loans so that even if you have £4k invested it would take many individuals to default to lose any significant sum. Certainly not something I'd be putting massive amounts of cash in, though, but works as part of a bigger picture.
I'd echo the above, I initially borrowed from them a few years ago as they beat all the usual high street rates. I've had around 5k in there for the past 2-3 years which has performed well.
I had my first loan default last month which was for £2.89 so not a big loss. Most my loans are £20 chunks.
ETA: There's a referral link in my profile if you're thinking of signing up - we both get £50
I had my first loan default last month which was for £2.89 so not a big loss. Most my loans are £20 chunks.
ETA: There's a referral link in my profile if you're thinking of signing up - we both get £50
Phateuk said:
I'd echo the above, I initially borrowed from them a few years ago as they beat all the usual high street rates. I've had around 5k in there for the past 2-3 years which has performed well.
I had my first loan default last month which was for £2.89 so not a big loss. Most my loans are £20 chunks.
ETA: There's a referral link in my profile if you're thinking of signing up - we both get £50
i might well look at that then thanks! I had my first loan default last month which was for £2.89 so not a big loss. Most my loans are £20 chunks.
ETA: There's a referral link in my profile if you're thinking of signing up - we both get £50
I use p2p across multiple platforms
-Ratesetter £1bn lent and provision fund so far covered all bad debts) 6% ish
-Rebuildingsociety high rates b2b loans higher bad debts but rates compensate 16% ish
-Saving Stream - all property based - 12%
-Funding Secure - online p2p pawnbroking - all asset backed, cars gold etc - 12%
P2P is obviously not FCSC backed, but there is a P2P ISA launching from April and 1st £1000 of interest p.a. is tax free and bad debts can be offset against interest before paying tax.
There are other platforms as well, the above are just some of the main players.
-Ratesetter £1bn lent and provision fund so far covered all bad debts) 6% ish
-Rebuildingsociety high rates b2b loans higher bad debts but rates compensate 16% ish
-Saving Stream - all property based - 12%
-Funding Secure - online p2p pawnbroking - all asset backed, cars gold etc - 12%
P2P is obviously not FCSC backed, but there is a P2P ISA launching from April and 1st £1000 of interest p.a. is tax free and bad debts can be offset against interest before paying tax.
There are other platforms as well, the above are just some of the main players.
Mr Overheads said:
I use p2p across multiple platforms
-Ratesetter £1bn lent and provision fund so far covered all bad debts) 6% ish
-Rebuildingsociety high rates b2b loans higher bad debts but rates compensate 16% ish
-Saving Stream - all property based - 12%
-Funding Secure - online p2p pawnbroking - all asset backed, cars gold etc - 12%
P2P is obviously not FCSC backed, but there is a P2P ISA launching from April and 1st £1000 of interest p.a. is tax free and bad debts can be offset against interest before paying tax.
There are other platforms as well, the above are just some of the main players.
That's helpful thanks-Ratesetter £1bn lent and provision fund so far covered all bad debts) 6% ish
-Rebuildingsociety high rates b2b loans higher bad debts but rates compensate 16% ish
-Saving Stream - all property based - 12%
-Funding Secure - online p2p pawnbroking - all asset backed, cars gold etc - 12%
P2P is obviously not FCSC backed, but there is a P2P ISA launching from April and 1st £1000 of interest p.a. is tax free and bad debts can be offset against interest before paying tax.
There are other platforms as well, the above are just some of the main players.
One thing I can't get my head around with Zopa is the term vs rate.
According to my maths, you can opt for a 5 year term to get the best rate and sell the loan after a year. Given that, why would anyone go for anything other than the longest term and best rate?
I asked Zopa this question and they basically said, er, yes, I suppose so. I'm guessing there is a hitch somewhere??
According to my maths, you can opt for a 5 year term to get the best rate and sell the loan after a year. Given that, why would anyone go for anything other than the longest term and best rate?
I asked Zopa this question and they basically said, er, yes, I suppose so. I'm guessing there is a hitch somewhere??
cashmax said:
One thing I can't get my head around with Zopa is the term vs rate.
According to my maths, you can opt for a 5 year term to get the best rate and sell the loan after a year. Given that, why would anyone go for anything other than the longest term and best rate?
I asked Zopa this question and they basically said, er, yes, I suppose so. I'm guessing there is a hitch somewhere??
I think the problem is that you have to find someone to buy out your share - if they can't do that, you're stuck for 5 years...According to my maths, you can opt for a 5 year term to get the best rate and sell the loan after a year. Given that, why would anyone go for anything other than the longest term and best rate?
I asked Zopa this question and they basically said, er, yes, I suppose so. I'm guessing there is a hitch somewhere??
cashmax said:
One thing I can't get my head around with Zopa is the term vs rate.
According to my maths, you can opt for a 5 year term to get the best rate and sell the loan after a year. Given that, why would anyone go for anything other than the longest term and best rate?
I asked Zopa this question and they basically said, er, yes, I suppose so. I'm guessing there is a hitch somewhere??
They charge 1% for that don't they?According to my maths, you can opt for a 5 year term to get the best rate and sell the loan after a year. Given that, why would anyone go for anything other than the longest term and best rate?
I asked Zopa this question and they basically said, er, yes, I suppose so. I'm guessing there is a hitch somewhere??
budgie smuggler said:
cashmax said:
One thing I can't get my head around with Zopa is the term vs rate.
According to my maths, you can opt for a 5 year term to get the best rate and sell the loan after a year. Given that, why would anyone go for anything other than the longest term and best rate?
I asked Zopa this question and they basically said, er, yes, I suppose so. I'm guessing there is a hitch somewhere??
They charge 1% for that don't they?According to my maths, you can opt for a 5 year term to get the best rate and sell the loan after a year. Given that, why would anyone go for anything other than the longest term and best rate?
I asked Zopa this question and they basically said, er, yes, I suppose so. I'm guessing there is a hitch somewhere??
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