MrB

Zopa

57 posts in this topic

How are other ZOPA investors finding it lately?

Things have stabilised, I was expecting the Lates to start rising, but they've been acceptable.

Closed: 45 -- Average rate: 9.25%

Late: 3 -- Average rate: 10.74% (2x B 1xA)

On Time: 371 -- Average rate: 9.28%

Processing: 3 -- Average rate: 8.27% (3x A*)

Written Off: 1 -- Average rate: 13% (1xB)

Edited by exiges

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Bump.

Is the real benefit of Zopa the fact that interest is paid gross, unlike all other savings I know that are paid with the tax deducted. How many Zopa investors are declaring there interest payments on there tax return? Is it a good tax dodge or do Zopa have to reveal all to the tax man for us. Any thoughts?

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was looking at it today had in in my fav for a long time

.

THE STATE OF MY FINANCES

Total: c. £42k debt

Salary: £65k

Post tax monthly income: £3,721

Bonus: Variable

Debt details:

Barclays Staff Loan: 20k @ c.10% APR B/Card

Goldfish: £6700 just refinanced at 0% until April 2011 (this payed off an M&S Card)

B/Card Standard: c£2000 on average APR of about 10%

M&S Loan: c.£5k @ 11% APR

Student Loan c.£1200 @4% APR

Santander loan: £5000 on c.%15 APR

Lloyds Card: £1500 @ 27% APR

this seems common for most on there.

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how on earth do d*ckheads with these attitudes to money get the promotions? I remeber competing with these people and their false-wealth rubbing off and them getting professional respect for it.....

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was looking at it today had in in my fav for a long time

.

THE STATE OF MY FINANCES

Total: c. £42k debt

Salary: £65k

Post tax monthly income: £3,721

Bonus: Variable

Debt details:

Barclays Staff Loan: 20k @ c.10% APR B/Card

Goldfish: £6700 just refinanced at 0% until April 2011 (this payed off an M&S Card)

B/Card Standard: c£2000 on average APR of about 10%

M&S Loan: c.£5k @ 11% APR

Student Loan c.£1200 @4% APR

Santander loan: £5000 on c.%15 APR

Lloyds Card: £1500 @ 27% APR

this seems common for most on there.

... the other Q is: what does this person have to show for this debt?

Aidanapword

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was looking at it today had in in my fav for a long time

.

THE STATE OF MY FINANCES

Total: c. £42k debt

Salary: £65k

Post tax monthly income: £3,721

Bonus: Variable

Debt details:

Barclays Staff Loan: 20k @ c.10% APR B/Card

Goldfish: £6700 just refinanced at 0% until April 2011 (this payed off an M&S Card)

B/Card Standard: c£2000 on average APR of about 10%

M&S Loan: c.£5k @ 11% APR

Student Loan c.£1200 @4% APR

Santander loan: £5000 on c.%15 APR

Lloyds Card: £1500 @ 27% APR

this seems common for most on there.

What on earth are you posting about and how does it relate to the post title 'Zopa'? blink.gif

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What on earth are you posting about and how does it relate to the post title 'Zopa'? blink.gif

Being a Zopa lender, I can follow the OP :)

Just think though - the ones who are taking all this credit and refinancing into a sensible IR are actually the sensible ones.

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What on earth are you posting about and how does it relate to the post title 'Zopa'? blink.gif

Hmmmm, I'll try and spell it out for you and others.

It's from the peer to peer lending site Zopa, where individuals lend and borrow - with Zopa taking some kind of a commission to pay for admin etc.

It's the profile of someone who wants to borrow money from the people who lend money (like me!).

They are describing their personal circumstances including lots of debt even though they have a big salary.

Question is are they typical - are many over-indebted in silly ways like owing on credit cards. For those that are doing this, how many have heard of Zopa or have tried to sort out their financial mess?

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Zopa organise loans into tranches based on risk, then put together a package of loans of different risk levels, theoretically making the risk of default less likely for lenders, if I remember correctly. But hang on, wasn't this exactly the same way the banks packaged up mortgage debt? Wasn't this why we had the subprime crisis?

Wouldn't find me lending on there.

Edited by General Congreve

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Zopa organise loans into tranches based on risk, then put together a package of loans of different risk levels, theoretically making the risk of default less likely for lenders, if I remember correctly. But hang on, wasn't this exactly the same way the banks packaged up mortgage debt? Wasn't this why we had the subprime crisis?

Wouldn't find me lending on there.

True, however ZOPA only takes people who have an above average credit rating and reject a very high proportion of applicants because they don't meet this. Still, my 500 quid in there is a bit risky because it won't only be poor people going to the wall over the next year or two.

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Zopa organise loans into tranches based on risk, then put together a package of loans of different risk levels, theoretically making the risk of default less likely for lenders, if I remember correctly. But hang on, wasn't this exactly the same way the banks packaged up mortgage debt? Wasn't this why we had the subprime crisis?

Wouldn't find me lending on there.

Tranches? Risk levels? Are you sure you're not over-complicating it?

I've got £100 in there just to see how it works. The mainstream Zopa market is split into 'markets' based on credit rating (A+, A, B, C, Y = young person), I guess that's what you mean by 'tranches'.

You choose which markets you want to lend in, the riskier ones (lower credit rating) have a higher interest rate on the loan to try to make up for the increased chance of default.

Your money is lent out in small amounts (£10 min) e.g. my £100 it is lent out to 10 different people. Zopa don't do any 'packaging' as I understand the MBS's did. But I'm not a financial person so I may be ignorant here.

I can see the user profile of each of those £10 loans - what it's for, etc. It's worth putting some money just to rubberneck at what other people are borrowing money for. Mainly cars, home improvement and debt consolidation so far.

I wouldn't use it as a low-risk investment scheme but it seems to be a good way to diversify a bit.

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I've got £100 in there just to see how it works. The mainstream Zopa market is split into 'markets' based on credit rating (A+, A, B, C, Y = young person), I guess that's what you mean by 'tranches'.

I've got about £5000 in Zopa at an average lending rate of 9.2%, in over 350 microloans. <touch wood>Only 1 has been written off, 2 are late.</touch wood>

So far it's outperforming my other investments.

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I'm very interested in Zopa, but being an extremely risk-averse sort, I thought I would wait a few years to see if there were any horror stories coming out about Zopa's attempts at collecting from defaulters i.e. whether not enthusiastic enough in pursuing payments or being overenthusiastic (wouldn't want to be responsible for intimidation of families).

Has anyone who has been involved with Zopa had any bad experiences? It just sounds a bit too good to be true to me.

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Can you ask Zopa to spread your money around the accounts or must you do this manually?

I am interested in sticking some money in here too but it all seems a bit wierd to me and like the above poster I wonder just how hard Zopa actually pursues those who are in default?

Does anyone have independant information on this?

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Can you ask Zopa to spread your money around the accounts or must you do this manually?

I am interested in sticking some money in here too but it all seems a bit wierd to me and like the above poster I wonder just how hard Zopa actually pursues those who are in default?

Does anyone have independant information on this?

Limit your loans to £10 per borrower. Thats what I do in most cases. I have £10K lent out to approx 950 borrowers

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Being a Zopa lender, I can follow the OP :)

Just think though - the ones who are taking all this credit and refinancing into a sensible IR are actually the sensible ones.

You really think that's what they're doing?

"Hey, look, another source of funny-money to fund my next whim ..."

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ZOPA update

Noticed rates dropping through the floor. Demand for laons low and cash on offer high.

I am now down to reinvesting interest. Thinking about pulling my £50 a week of new cash too. Last spring & summer I was sticking in a 4 figure sum each month

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I put a relatively small amount into Zopa to test it before thinking about putting in more substantial amounts. I have noticed that the return available keep going down and down. The return available are still marginally better than a best buy savings account, but only just after factoring in expected defaults and fees. Anyone else noticed these diminishing returns? Am starting to think its more hassle than its worth, although its a great concept to cut banks out of the deal as far as possible. On the plus side, they have now created a secondary market, so you can get you money back more rapidly assuming someone wants to buy your loan book.

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I put a relatively small amount into Zopa to test it before thinking about putting in more substantial amounts. I have noticed that the return available keep going down and down. The return available are still marginally better than a best buy savings account, but only just after factoring in expected defaults and fees. Anyone else noticed these diminishing returns? Am starting to think its more hassle than its worth, although its a great concept to cut banks out of the deal as far as possible. On the plus side, they have now created a secondary market, so you can get you money back more rapidly assuming someone wants to buy your loan book.

I expect it's supply and demand. As elsewhere there's too much money chasing yield.

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I expect it's supply and demand.  As elsewhere there's too much money chasing yield.

Agree, I have about £3k in Zopa, and all the old loans are doing fine, but looks like the yield is lower on any new ones.  That's the market for you.

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Agree, I have about £3k in Zopa, and all the old loans are doing fine, but looks like the yield is lower on any new ones.  That's the market for you.

I have 12K and just checked my lending month average rates. They started falling in November and plummeted in December.

In terms of rapid return not many are exercising this option. I have purchased 1 part paid loan since the scheme started. I suppose the inrush of new cash is as a result of the option being there.

Need to start plugging zopa laons to my indebted mates ;)

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