Anyone heard of Zopa?

TechnoBadger

I've found very few mentions of Zopa on MSE. I've found it useful as an alternative to shares / ISAs etc. I posted the following on one thread that I did find:

Just about all my shares are on a slippery slope at the moment... Now my Zopa lending, well that's a different kettle of fish. It's P2P lending to credit-worthy people. You choose your own rates and diversification depending on how quick you want your money to go out. Yes, there could be defaults but they've been very, very low so far and none in my case after about eight months with them. Check out their forums - I think you'll find everyone happy at the moment. Drip feed your money, and obviously try just a little to start with. Good fun, and can be hands-on or hands-off depending on yourself. Highly recommended.

www.uk.zopa.com

http://talk.zopa.com/

My average return is over 10%, recent lending offers have been much higher.

debbie42

I've read about it several times on here!

saveallmymoney

I have a few hundred with Zopa, getting 8.5% on average.

I'll be drip feeding more funds in as time goes on.

TechnoBadger

Don't forget to move your rates upwards - there's obviously high demand at the moment. Which could be good for the investors!

michaels

Also have a look on the referrals board for an extra £45

Kavanne

Do you/how do you pay tax on your Zopa earnings?

spalding

Yes you do you need to inform inland revenue yourself its up to you to declare it, zopa send you a yearly break down of your earnings

LucyTheDwarf

I lost patience with Zopa. Perhaps it was my timing, but I never got a rate that was better than my savings accounts. I tried it about 9 months ago. My verdict was that the stories of average returns of 7+% were just that: stories! Haven't funded it for ages now.

Kavanne

LucyTheDwarf wrote: »

I lost patience with Zopa. Perhaps it was my timing, but I never got a rate that was better than my savings accounts. I tried it about 9 months ago. My verdict was that the stories of average returns of 7+% were just that: stories! Haven't funded it for ages now.

I think you have to pick the higher risk borrowers to get those rates?

TechnoBadger

In theory at least, none of Zopa's borrowers are high risk. And your lending is spread amongst many borrowers. I believe that since they started they've only had one defaulter. Rates seem to be a bit higher at the moment, for obvious reasons. Try a lending range of 9% - 13% through their 8 markets to start with maybe? Ignore the "stay within the Zopa" advice. And start with just a small investment until you've sussed this "social lending".

Kavanne

Hmm, just opened an acct. and transferred £400 to start off with.. wish me luck...

Not sure how it works as the £400 hasn't been processed by them yet.. will I get a confirmation email when they receive it and my money is ready to lend? How do I accept offers?

Very confusing!!