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HOLA441
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HOLA442
Someone started a thread a few weeks ago regarding Zopa and how lending rates were creeping upwards

1). Anyone remember - I can't find it non search?

2). Why is noone taking my £10 on the A*36 market at 10%? Is this still too high?

Last range working for me was 7-9%.

It will take longer to lend out at 10%. You should use the rate checker, comparing your offering to the rest of the market.

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HOLA443
Someone started a thread a few weeks ago regarding Zopa and how lending rates were creeping upwards

1). Anyone remember - I can't find it non search?

2). Why is noone taking my £10 on the A*36 market at 10%? Is this still too high?

Cos you are a greedy capitalist! ;)

Didn't know you could lend so little with Zopa. Might give it a try. I notice when you lend over £500, "your money is spread over at least 50 borrowers."

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HOLA444

I had a look and it looks like a waste of time. Most / all would be borrowers are already over borrowed (e.g. don't know how to save) and asking for unsecured loans at a max rate of 10%? I thought there might be businesses in there but can't find anything serious?

How are you expected to take such risks without an army of in house solicitors at hand? And how can you hope to see all of your money back , let alone make a profit?

Please correct me if I'm wrong, the ideal / concept, is nice, but practically it looks like a guaranteed loss for an investor? Has anyone got some experience of this?

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HOLA445
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HOLA447
  • 2 months later...
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HOLA448

Thought it might be worth bumping the ZOPA thread

Putting some savings in PMs and lending out through ZOPA seems a way of telling the financial sector to spin on it and has the advantage that the banks and the government can't use our deposits to support house prices by offering mortgages.

There aren't many ways to tell the banks to keep their poxy savings rates.

I have started putting some money into ZOPAand anticipating a return of 6.5% gross after estimated bad debts. Done it in the wifes name so that only basic rate tax will be payable.

Any thoughts on this. Is ZOPAs estimate of bad debts credible? What happens if ZOPA goes bust. Is the money in a nominee account or is it part of ZOPAs assets? Is their any way to recover money before the 36 or 60 month periods if personal circumstances change?

Edited by dr ray
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  • 3 months later...
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HOLA4411

has anyone used Zopa.com? have you had good or bad experiences?

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

i see on their site you can now choose the exact person you lend to.. like ebay for money lenders

Hi Second Zopa thread of the day!

Lending on the Zopa listings is fraught with Bad Debt so be careful....

Personally I am sticking with the low risk A and A* Zopa markets - Even in those markets I currently have one late payment out of around 100 borrowers.

If you PM me, I'm happy to send you some Zopa Excel analysis.

Regards

M21er

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HOLA4412

You could borrow @ 10% and then lend it out on Zopa for 15% without needing any capital.

Hi

If only it was that simple...

As at last week ( w/e 8 February ) the highest rate available was 13.5% pa in the high risk C60 ( 5 years ) Market. At that rate you'd lend very little of your funds as you'd only match borrowers wanting a £15k loan. The C market was offering between 11.1% and 13.5%

The C Market is very high risk so I'd expect to see large amounts of bad debt - certainly more than your premium

M21er

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HOLA4413

Been using it for nearly 2yrs now as a lender. In that time I've only had one borrower default (I lost £9) so my profits far outweigh losses. Major downside I find is that there's no quick way of getting your hands on the cash you've lent out so in the 'Markets' you're potentially tied in for quite a while.

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HOLA4414

I've been using it for a year, lending to 63 different people and no bad debts so far. It works best if you have a bit of patients. The rates are constantly changing, so sometimes on a Friday night or when there's a banking problem the rates can leap up and you can get a decent return for the risk.

My money is lent out at rates ranging from 6.90% to 16.50% to various risk categories. The system for lending money out is very easy to use and presents all information very clearly. Two bad points are that any money lent out is tied up for a long period and the return is fixed.

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