Anyone lend with Zopa?

lucylema

I have been watching Martin Lewis on telly tonight and he was talking about Zopa and I am wondering I this is a good thing.

ChesterDog

The rates aren't very good at the moment.

Ratesetter's are a little better. Off the top of my head, 5.0 and 5.6% respectively for five years. Not brilliant for a non-guaranteed investment (ie covered only by their own provision funds), but a useful bit of diversification.

easteregg_2

lucylema wrote: »

I have been watching Martin Lewis on telly tonight and he was talking about Zopa and I am wondering I this is a good thing.

The rates on the major peer-to-peer companies have fallen over the last couple of years, but some of the smaller companies are offering good rates. Without listing them all here google "compare p2p lending rates" to see the rates after tax. It isn't the headline rate that is important - it is your actual return after all deductions.

janiebquick

Yes, I started lending with them in April last year for a bit of diversification. I think the best way to do it is to drip feed money in as, that way, money doesn't sit around waiting to be lent out.

agent69

Don't understand why anyone would put money into Zopa when rates are higher (for similar security) at Ratesetter. Typically 4.5% for 3 year loan and 5.7% for 5 year loan.

I was a Zopa lender but withdrew my money when their rates continued to fall. At Ratesetter you can decide what rate you want and you can wait to see if any borrower is interested, I think at Zopa you get whatever rate they decide is appropriate.

If you fancy more of a risk try Assetz. You can lend from £20 a time on asset secured loans at around 10 - 11%. There's no provision fund so you can loose money if the borrower goes pop and the security is not as good as you thought.