Zopa. Anyone here lent or borrowed through them?

Tulipone

Tulipone

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Chris
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I came across Zopa recently and have been wondering if I should lend some money there.

For those that have not heard the idea is that they broker lenders and borrowers. If you have spare cash you can offer it up and decide what interest rate you want. Credit scores are assessed and (in theory) the cash rolls back to you.

I am not interested in referrals just interested to see how anyone has done in the real world.
 
I'be used Zopa for over a year now, as a lender. I have a standing order, for a regular amount, which is an amount that I can afford to 'lose' if the borrower defaults. To date, I've had no defaults and the interest on the loans that I have made, is around 8% on average. If you like a little gamble and can afford to lose a small amount without affecting your own financial status, then it's worth investing.
 
How much aggro is it declaring the income from interest on your tax return? That puts me off lending on there, as I'd have to fill out a tax return.
 
I never even knew about this...

Say I put in... £2000. What would I expect to get back each month? I know it varies greatly, but after reading their FAQ etc... i'm still a little confused as to how it all works.
 
Sounds a very interesting model actually...wish I'd been innovative enough to think of it myself!
 
I had not considered a Standing Order but have tried to shove in £100 to find out how it works. The trouble with using it as an investment is that the interest is not an incentive unless you lend a lot - the idea of lending £100, waiting a year to hopefully get £108 back is pants!
 
I fill in a Tax Return every year, so there is no extra work for me. As with most worthwhile investments, you need to look to the long term. I agree that having say £100 invested for a return of 8%, which you then pay tax on, is no real incentive. But the potential return on larger sums makes larger investments worthwhile. If you think about Unit Trusts where you may drip feed in say £50 a month for 5 years, you ride the peaks and troughs. Hopefully, after the 5 years or other time period, you take your overall profit, if any. Zopa is similar, if you view it as a longer term investment and you drip feed your account. With any luck, after you discount your losses (if any) you will come out of with some profit. Like all investments that give you a potentially higher return than the banks or building societies, there is always a risk. Never invest more than you can afford to lose.
 
I filled in three years' worth of tax returns a few years back due to an HMRC error. I was very glad when (after it turned out they owed me £70 instead of me owing them £1500 like they started off claiming) they said they weren't going to send me any more. It's not difficult as it's only arithmetic that a seven year old can do, but it is time consuming, even for someone like me on PAYE with just a few accounts paying interest.
 
Had a look at this, you would need to lend £in the thousands to get any kind of decent return, and tbh this is only the start of the hard times, stick it in a tracker bond, intreats rates are bound to go up, + more can be made on other sites.


Merc

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I had transferred £100 and intended to play with it but agree that the drip feed is the most appropriate way, something I am not inclined to do. Better to ensure my full quota of ISA is used rather than paying 40% to HMG.

Thanks for your views.
 
Tulipone said:
I had transferred £100 and intended to play with it but agree that the drip feed is the most appropriate way, something I am not inclined to do. Better to ensure my full quota of ISA is used rather than paying 40% to HMG.

Thanks for your views.
Click to expand...

+1 for the ISA £10,660 good return tax free ok fee to set up,



Merc

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