Jump to content
House Price Crash Forum
Vested Disinterest

Connecting The Dots: Zopa And Help To Buy

Recommended Posts

I just got this in a Zopa email update:

Faster lending in up to 5 years! Following a record week of £5.8million lent, we're currently seeing high demand from borrowers for 4 and 5 year loans. So it's a great time to top up your offer or switch your rate today.

Could this be people borrowing their 5% deposits from Zopa? (£15k would be 5% of £300k)

I haven't done all the sums but this would cost approx:

A loan of £15,000 over 5 years will cost you £283.80 per month

(current zopa estimate)

Someone please fill me in on the legalities (presumably it isn't allowed).

I have personally stopped lending on Zopa since they started bubble-wrapping every loan in opaque layers of insurance. All because their target customers couldn't handle a bit of risk, diddums.

Edited by Vested Disinterest

Share this post


Link to post
Share on other sites

I just got this in a Zopa email update:

Could this be people borrowing their 5% deposits from Zopa (£15k would be 5% of £300k)

I haven't done all the sums but this would cost approx:

(current zopa estimate)

Someone please fill me in on the legalities (presumably it isn't allowed).

I have personally stopped lending on Zopa since they started bubble-wrapping every loan in opaque layers of insurance. All because their target customers couldn't handle a bit of risk, diddums.

I recommend that people who need to raise the deposit for HTB take out a payday loan. You know it makes sense.

Share this post


Link to post
Share on other sites

I just got this in a Zopa email update:

Could this be people borrowing their 5% deposits from Zopa? (£15k would be 5% of £300k)

I haven't done all the sums but this would cost approx:

(current zopa estimate)

Someone please fill me in on the legalities (presumably it isn't allowed).

Yes it's not allowed.

When taking out a mortgage you have to list all your existing borrowings. Lying here is what cost Mandelson his job (the first time)

Share this post


Link to post
Share on other sites

Zopa these days has all the hallmarks of a Ponzi scheme - lots of online feedack your money is growing fast, but it is hard to actually get your alleged profits out.

Pissed me off when they arbitarily put my money into their insurance scam and overnight it became "lent out" and inaccessible.

Share this post


Link to post
Share on other sites

Additionally the only reason they had a bumper week of people putting money into Zopa is that they were offering 1% of your deposit back for any amount over £2K that you put in during the last couple of weeks. When rates are so low, an extra 1% is quite appealing. (pays for their 1% annual fee at least). But of course it also means that there are far more lenders than borrowers this week, which means it takes longer to lend.

Share this post


Link to post
Share on other sites

Was looking the other day at what people were borrowing for (for each borrower you can see where your £20 is going.

Of course I'm not sure what there is to prevent them lying on the form, but the most common thing seems to be "new car" (new to them of course, might be a second hand one that they would struggle to purchase otherwise) followed by "home improvements (which could be anything!) followed by the most worrying one "debt consolidation". (uh oh)

Since I discovered that list I've reconsidered lending any more via zopa. I really don't like the sound of debt consolidation, especially as some of those people are classed as A grade borrowers (which to me sounds like they are really good at borrowing!). Zopa have 10% of my savings so I'm going to keep that much with them just for the sake of diversification.

No I just have to figure the best time to put 10% of my savings into gold.

Oh, I think the best time for that was about 6 years ago. Damn.

Edited by Bear Necessities

Share this post


Link to post
Share on other sites

I've parked a couple of grand with Zopa that I drip feed out occasionally as it becomes available.

Had 2 bad debts of £6 ish each but other than that it's been fine, although it's cash to which I don't need instant access.

Share this post


Link to post
Share on other sites

They cover the bad debts now, so that you don't lose anything. at the expense of the interest rate being set for you (you have no control any more).

They *claim* to have a fund that will cover all bad debts, but I doubt it would be able to come in the face of financial Armageddon.

Share this post


Link to post
Share on other sites

Google zopa+house+deposit and the first available link (zopa itself) explicitly states that people borrowing money through them for the purpose of a house deposit ranks in their top 5 in two age categories 20-29 and 60-69.

Zopa allows it but I doubt their customers will be so forthright with their respective mortgage providers.

Share this post


Link to post
Share on other sites

If that is true then that's another good reason for me to stop putting money in there.

I'll be damned if I want people gathering housing deposits on my savings, interest rates to keep prices high have damaged them enough without adding fuel to the fire. Grrrrrr!

Share this post


Link to post
Share on other sites

Google zopa+house+deposit and the first available link (zopa itself) explicitly states that people borrowing money through them for the purpose of a house deposit ranks in their top 5 in two age categories 20-29 and 60-69.

Zopa allows it but I doubt their customers will be so forthright with their respective mortgage providers.

Thanks for this. Let the trickle out commence.

Share this post


Link to post
Share on other sites

Having found the bit where you can see what each person wants the loan for, I'm even more pissed off now!

One of the people who I've lent to (you don't get to choose the people yourself) has borrowed £15K for a car, another has borrowed £8K for a holiday home, one has borrowed £5K for a holiday, and someone who is borrowing £10K to consolidate their existing debts! - yeah they sound like someone in control of their finances! Oh, and I just found one more who is getting a loan to buy a flipping boat!!!!! What the Feck?!

Those are all classes as A* borrowers (lowest risk)

I can't seem to find the "Don't loan to *****" button. There really should be one. When it's someone who wants 3K to get a new (second hand) motor then I can understand that, but some of these other things are just taking the piss.

The guy who borrowed £15K for a car commented that he wanted to be able to loan to people himself one day. Uhhh, not if you think borrowing £15K for a new car is a good idea mate. FFS.

Which leaves the question, where the feck do I put my money now? I was only using Zopa to get some of the money out of the main ******* banks and to stand a chance of perhaps keeping up with inflation (fat chance). So where do I turn now? Any suggestions?

Edited by Bear Necessities

Share this post


Link to post
Share on other sites

Just found another one that is only 30 but needs £15K to pay off credit card debts. twit.

and wow, one that has borrowed £9,200 for wedding expenses.

What better way to start your blissful marriage than £10K of debt. Fecking morons.

I must say as well as allowing me to vent my judgemental rage, this is also an eye opener as to what the hell people piss money away on.

Share this post


Link to post
Share on other sites

Zopa these days has all the hallmarks of a Ponzi scheme - lots of online feedack your money is growing fast, but it is hard to actually get your alleged profits out.

Pissed me off when they arbitarily put my money into their insurance scam and overnight it became "lent out" and inaccessible.

I don't lend on Zopa anymore either, and think the new system stinks. But to be fair, they sent loads and loads of warnings that they were going to start automatically moving money into the new scheme, and gave plenty of notice. I even had a letter on a piece of paper in the post from them.

Share this post


Link to post
Share on other sites

I don't really have a problem with the new lending system, it was always a bit daft being able to set your own rates because if you didn't set them within a very narrow band then you just would never lend anything because someone else would lend cheaper.

My only issue is now that I've found out the sort of crap people are getting loans for, but then again its the same with the high street banks where the rest of my savings are, but in that case I don't get told what crap people are buying!

Share this post


Link to post
Share on other sites

Yes it's not allowed.

When taking out a mortgage you have to list all your existing borrowings. Lying here is what cost Mandelson his job (the first time)

I was just flicking through my Zopa account and found I'd leant to someone who was borrowing for a "House deposit" in Manchester on the B market. I guess it is allowed!? :blink:. Or is it the mortgage company who will say "debt is not a deposit" and laugh them out of the branch?

Share this post


Link to post
Share on other sites

I was just flicking through my Zopa account and found I'd leant to someone who was borrowing for a "House deposit" in Manchester on the B market. I guess it is allowed!? :blink:. Or is it the mortgage company who will say "debt is not a deposit" and laugh them out of the branch?

Zopa Thread on the subject of debt deposits.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   203 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.