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Zopa Social lending network Rate Topic: -----

#1 User is offline   MrB 

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Posted 06 March 2010 - 06:38 PM

http://uk.zopa.com/ZopaWeb/

Anyone tried it. I'm tempted to give it a go.
1. Get up
2. Have a piss
3. Go to work
4. Get back from work

5. Read HPC
6. Watch The Bill
7. Go to bed


Stages 1-4 will happen between 7am and 5.30pm. Stage 5 is happening now. Stage 6 & 7 could happen anytime soon. Protect yourselves: buy an overpriced house!

#2 User is offline   Hippy 

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Posted 06 March 2010 - 06:46 PM

Have about £2000 with them over a year. Returns 5.5% after bad debt (1 loan of £29 lost)

#3 User is offline   aSecureTenant 

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Posted 06 March 2010 - 06:54 PM

View PostHippy, on 06 March 2010 - 06:46 PM, said:

Have about £2000 with them over a year. Returns 5.5% after bad debt (1 loan of £29 lost)


Did think of slinging £2k Zopa's way. How do run it Hippy? Lots of small £30 loans?

There have been threads on this before. Can't find them now though.

This post has been edited by TheReturnofRover2000: 06 March 2010 - 06:54 PM

"Capitalism has defeated communism. It is now well on its way to defeating democracy" - David Korten

"The real tragedy is not whether lib lab or con will win but that one of them will" - Sir Harold m



#4 User is offline   aSecureTenant 

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Posted 06 March 2010 - 07:06 PM

View Postdoccyboy, on 06 March 2010 - 07:00 PM, said:

Threads are in this sub forum


Thanks doccyboy
"Capitalism has defeated communism. It is now well on its way to defeating democracy" - David Korten

"The real tragedy is not whether lib lab or con will win but that one of them will" - Sir Harold m



#5 User is offline   Hippy 

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Posted 06 March 2010 - 07:15 PM

View PostTheReturnofRover2000, on 06 March 2010 - 06:54 PM, said:

Did think of slinging £2k Zopa's way. How do run it Hippy? Lots of small £30 loans?

There have been threads on this before. Can't find them now though.


I am currently lending to 125 people sums between £10 and £30 with a mixture of A+, A, B and C over 3 and 5 years.

My feeling is it is good for borrowers compared to the banks but the extended tie in is a pain for lenders - I'm slowly removing my money but that will take almost 5 years. It would really help if you could sell on your loans when you need your money back. As it is you get it back in penny packets. The lack of ISA wrapper is also a loat opportunity.

The borrowers get to pay off the loan whenever they want i.e. the best customers leave early and reduce the returns. The one borrower who defaulted had a rating of A. In addition I have another borrower who has a very poor record of paying on time with a credit rating of A+ so I am also concerned that bad debt could wipe out returns

#6 User is offline   porca misèria 

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Posted 01 April 2010 - 08:08 PM

Isn't zopa a whole lot more trouble than it's worth?

You're all talking of small amounts. £1k at 8% is £80/year, which is surely not worth more than a one-off form-filling exercise. Anyone in there for noticeable money - say £1k income in a year? How much time and effort (not to mention sleepless nights over repayment) do you put in for your returns?

#7 User is offline   Kurt Barlow 

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Posted 02 April 2010 - 12:41 AM

View Postporca misèria, on 01 April 2010 - 08:08 PM, said:

Isn't zopa a whole lot more trouble than it's worth?

You're all talking of small amounts. £1k at 8% is £80/year, which is surely not worth more than a one-off form-filling exercise. Anyone in there for noticeable money - say £1k income in a year? How much time and effort (not to mention sleepless nights over repayment) do you put in for your returns?



Not really - I certainly dont lose any sleep over the occasional default on a £10 laon. Overall my return is in the region of 7%. Once you have set up your loan book - you can switch to auto lend which simply recycles payments back in. Alternatively let them fill up a holding account.

#8 User is offline   DrGUID 

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Posted 07 April 2010 - 08:47 AM

I've been getting back into lending on Zopa as well - I've noticed that if I leave spare cash lying around in my account there it gradually gets lent out at something like 9.5%. It's better than leaving it in my current account or ISA getting 0.1% or something.

I've not had any defaults on Zopa but I have two late loans which is unfortunate. Maybe I'll get something back for them eventually.

#9 User is offline   billfunk 

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Posted 11 April 2010 - 12:18 AM

I put 100 quid in zopa last august/september just to test it out.

At the moment (well 7/4/2010) I am 5.39 up. After the full year is up I will be pushing 8%.

I only lend to A*/As and have no bad debt (out of 11 loans).

My plan now is to stick in an extra 250/300 quid a month (lot for me! - 25k p/a) and wait for the first bad debt.

As someone with little savings and no need to buy a house in the next few years it is perfect for me. The best ISA is around 4.5% and i'm sure this is a teaser rate - will be 1.5% next year. Can't be arsed with all the pessing around. ZOPA seems a good way to invest as it cuts out the c unty middleman.

I tend to lend in the ZOPA - ie. I dont have any great strategies. Just a simple man trying save his money effectively. Any help greatly appreciated.

#10 User is offline   Kurt Barlow 

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Posted 12 April 2010 - 06:01 PM

View Postbillbill81, on 11 April 2010 - 12:18 AM, said:

I put 100 quid in zopa last august/september just to test it out.

At the moment (well 7/4/2010) I am 5.39 up. After the full year is up I will be pushing 8%.

I only lend to A*/As and have no bad debt (out of 11 loans).

My plan now is to stick in an extra 250/300 quid a month (lot for me! - 25k p/a) and wait for the first bad debt.

As someone with little savings and no need to buy a house in the next few years it is perfect for me. The best ISA is around 4.5% and i'm sure this is a teaser rate - will be 1.5% next year. Can't be arsed with all the pessing around. ZOPA seems a good way to invest as it cuts out the c unty middleman.

I tend to lend in the ZOPA - ie. I dont have any great strategies. Just a simple man trying save his money effectively. Any help greatly appreciated.




trickle money in rather than in lumps. When you put a large lump in there is the temptation to drop your rates to get it lent out quickly. I did this with £3K and had to discount heavily to get it lent out. Still rate far exceeded poxy rate in the BS.

If you plan to put £300 a month in it would be better to set up a standing order to put £70 a week in.

#11 User is offline   Si1 

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Posted 13 April 2010 - 10:51 AM

View PostKurt Barlow, on 12 April 2010 - 06:01 PM, said:

trickle money in rather than in lumps. When you put a large lump in there is the temptation to drop your rates to get it lent out quickly. I did this with £3K and had to discount heavily to get it lent out. Still rate far exceeded poxy rate in the BS.

If you plan to put £300 a month in it would be better to set up a standing order to put £70 a week in.



how is this intrinsically different from investing in, say, a corporate bond index - it is surely still more or less lending directly but with diversification between borrowers?

#12 User is offline   billfunk 

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Posted 13 April 2010 - 06:38 PM

I am scared of corporate bonds becuase i don't understand them.

I feel safe at ZOPA as i have done my 8 month test and not been burnt. I will now increase my holding 70 quid per week (thanks Kurt) and wait til i get burnt. Then have a rethink if necessary.

Oh, also just found a fun new hobby. On Zopa listing there are a lot of no hopers and p iss takers hoping to get loans at lower than reality rates. These are usually the people who have been rejected by the ZOPA market or are unhappy with the rate offered. So they go on the listings and take the mick. Not all of them, but there are di kh eads on there...

Anyway, you get to ask them questions about their finances which is kinda fun as you know most of them are chancers. They can respond or not, but all the responses are published underneath their begging notice.

Fun for all the people who believe that irresponsible debtors have ruined their saving rates.

This post has been edited by billbill81: 13 April 2010 - 06:44 PM


#13 User is offline   porca misèria 

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Posted 13 April 2010 - 10:46 PM

View Postbillbill81, on 13 April 2010 - 06:38 PM, said:

I am scared of corporate bonds becuase i don't understand them.

You're lending to a big company. It's one of the safest forms of investment if you pick a good company (though you can get higher returns with a more troubled company).

Quote

I feel safe at ZOPA as i have done my 8 month test and not been burnt.

That's the most dangerous attitude you could possibly have. By all means put more money in, but not more than you can afford to lose.

#14 User is offline   Kurt Barlow 

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Posted 13 May 2010 - 12:41 AM

View PostSi1, on 13 April 2010 - 10:51 AM, said:

how is this intrinsically different from investing in, say, a corporate bond index - it is surely still more or less lending directly but with diversification between borrowers?



Similar as DJIA says.

With CB's of course you can trade them whereas I don't believe there is any mechanism to sell your loan book on. Any money invested today will be paid back over 3 and 5 years depending on how you lent it out.

I am lending alot out on 60 month loans as rates much higher on these than 36 month.

I current have £5K in and am sticking amother couple of hundred in each month.

This post has been edited by Kurt Barlow: 13 May 2010 - 12:44 AM


#15 User is offline   Kurt Barlow 

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Posted 13 May 2010 - 12:43 AM

View PostKurt Barlow, on 13 May 2010 - 12:41 AM, said:

Similar as DJIA says.

With CB's of course you can trade them whereas I don't believe there is any mechanism to sell your loan book on. Any money invested today will be paid back over 3 and 5 years depending on how you lent it out.

I am lending alot out on 60 month loans as rates much higher on these than 36 month.

I current have £5K in and am sticking amother couple of hundred in each month.



Current spread is;

78% in A ratings
12% B ratings
10% in C,Y and listings


Approx 70% on 36 month loans and 30% on 60 month.

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