Anyone heard of Zopa?

TechnoBadger

You'll find your money's credited during office hours - so expect it in your account in the morning. You'll get an email too. There are 8 markets, A*, A, B and C each with 36 month and 60 month options. Click on the "Lend to Zopa Borrowers" button and choose from Quick Lend or Custom Lend. I'd choose custom lend and pop in some figures - your money will get lent out if to start with you pick 36 month rates at around A* 9%, A 10%, B 11%, C 12% and the 60 month rates 1% higher. You can choose not to lend to any particular market. Keep your diversification at £10 per borrower for now and see how you go. Tweak accordingly! Money not lent out earns interest. Good luck - there's a "lively" forum to help!

Kavanne

Thanks Techno badger!

Kavanne

Right all my money is processing now, any idea how long this takes?

LucyTheDwarf

Weeks if my experience was anything to go by! And I was going for the highest risk borrowers.

If you've got patience, you'll probably love it, and make it work for you. I have none.

Kavanne

Yeah thought I would give it a go as it looks like I could get a higher return than my mortgage rate so might be worth it!! STarted off with £400...

TechnoBadger

That was quick! I think around half of all loans never make it, but the money's returned to your offer and it will do the rounds again. Processing can take up to a week. Borrower checks are pretty rigorous as you'd hope. Did you try the 9% to 13% spread that I suggested to start with?

amcluesent

I've had a bag of sand on perpetual reloan on Zopa for 18 months or so.

I'll be 'interesting' to see what their aged debt looks like...IIRC most of my loans were to buy a car or redecorate - was the money going to 'flippers' now affected by HPC?

TechnoBadger

Here's a recent article about Zopa:

http://uk.biz.yahoo.com/11082008/404/loan-bank-says.html