james21
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Post by james21 on Dec 17, 2017 19:41:11 GMT
didnt like the sort of borrowers they were lending to ie the reasons they wanted my money, mostly non asset backed
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Post by df on Dec 17, 2017 20:53:28 GMT
I am because what I have left there to run down is covered by PF. I don't deposit any new money, just withdrawing returns as they come.
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Post by wangja on Dec 18, 2017 0:52:31 GMT
Comfortable? Not really. I was an early joiner (2007/8?) and much enjoyed ZOPA in its opening years. Listings! What fun they were.
Now? It is boring and I have gradually reduced from around 50,000 to 4,000. (Even had a CCL at one point). I'll keep it at around 4,000 if only for "old times' sake".
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ashtondav
Member of DD Central
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Post by ashtondav on Dec 18, 2017 9:20:04 GMT
Been with 'em since 2005. Very satisfied, and returns as forecast. My only "problem" is that I can get 6% on RS with a PF. So I will transfer until Zopa+ returns 6%+
I'm happy with "boring" and 6%
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bugs4me
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Post by bugs4me on Dec 18, 2017 16:01:34 GMT
Have been in withdrawal mode for some 3 years now ever since -
a) The lending speed fell off the cliff - was this at coincidentally the same time as institutional investors became interested?
b) The rates starting plummeting. I have no objection to paying an administration fee/management fee/etc - obviously costs have to be met. My objection was the standard advertised 1% which on say a 4% gross loan netted to 3% to myself - so a deduction of 25% to Z.
c) As the 1% was fixed, there was no incentive for Z to maximise the return to myself.
Now I'm just a lurker around here. Obviously I wish Z well for the future but no longer feel they operate in the best interests of their clients lenders.
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Post by geoffp on Dec 19, 2017 13:02:42 GMT
Assuming the Zopa is right about the default rates under the current economic environment? roughly 5.5% in defaults for the money invested on Zopa plus, are you comfortable with projected return of 5%+ (after the bad debts)?
Sorry I don't come here often enough!
However, I don't think a default rate of 5.5% (on total money lent in Z+) is compatible with a 5%+ rate of return At present I have a default rate of 3.05% of money lent, and a return of 5.15% (this rate is falling steadily. 1 month ago the ratios were 2.85% and 5.45%.
I also look at the ratio bad debt as a percentage of interest. For me this is currently 42%, compared with 39% a month ago. December looks to be shaping up as a bad month.
At present I am "quite concerned". If matters deteriorate further, then Zopa will not be meeting the targets it projects.
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Post by penguin on Dec 19, 2017 13:08:45 GMT
Hello, I am leaving Zopa now the provision fund has stopped. Slowly taking my money out every week but not sure where to put it. I am in a similar position. For what its worth I am testing out LendingWorks since they have a similar proposition to the "old" Zopa. Although I also use RS, I am not convinced that it is a like for like platform to Z in terms of the borrower composition, and therefore I would expect it to offer higher rates to Z
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happy
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Post by happy on Dec 19, 2017 13:38:19 GMT
Hello, I am leaving Zopa now the provision fund has stopped. Slowly taking my money out every week but not sure where to put it. I am in a similar position. For what its worth I am testing out LendingWorks since they have a similar proposition to the "old" Zopa. Although I also use RS, I am not convinced that it is a like for like platform to Z in terms of the borrower composition, and therefore I would expect it to offer higher rates to Z FYI I have had a low 5 figure pot in LendingWorks for over 2 years and I'm adding small amounts to it weekly. Nothing but impressed with the platform, everything dead easy to use and always works really well. Only issue I had was lending got a bit slow when they launched their IFISA but this is to be expected I think. Their engagement here is also good, another plus over RS and rates are OK particularly considering the added default insurance they provide. I have more invested in RS and Zopa but LendingWorks is the only one of the 3 I have been adding funds to over the last 6 months. Bottom Line: The most boring P2P site I use, which actually means it is is really easy to use, clear and concisely laid out, works pretty much as advertised almost all of the time and when you ask them questions they reply quickly and answer the question fully if they can. Based on my experience it would be an A* rating from me.
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ashtondav
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Post by ashtondav on Dec 19, 2017 13:40:07 GMT
Hello, I am leaving Zopa now the provision fund has stopped. Slowly taking my money out every week but not sure where to put it. I am in a similar position. For what its worth I am testing out LendingWorks since they have a similar proposition to the "old" Zopa. Although I also use RS, I am not convinced that it is a like for like platform to Z in terms of the borrower composition, and therefore I would expect it to offer higher rates to Z Lendingworks? Waaaaaaaaay too small for me. I'd want another two years before going there.
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happy
Member of DD Central
Posts: 397
Likes: 497
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Post by happy on Dec 19, 2017 13:55:21 GMT
I am in a similar position. For what its worth I am testing out LendingWorks since they have a similar proposition to the "old" Zopa. Although I also use RS, I am not convinced that it is a like for like platform to Z in terms of the borrower composition, and therefore I would expect it to offer higher rates to Z Lendingworks? Waaaaaaaaay too small for me. I'd want another two years before going there. Fair point, however they have grown their loan origination by 100% over the last year from £40m to £80m with over £50m active loan book so they are certainly not small any more, also they have increased lenders from around 2,000 to over 3,700. The statistics I like are the average income of their lenders borrowers, at nearly £34k pa (so mostly low-risk borrowers) and they do 99.5% of their loans to individuals so very little business lending which helps me with sector diversification.
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susan
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Post by susan on Dec 19, 2017 14:40:05 GMT
I am going to take my time moving out of Zopa. I liked the provision fund as you had no choice over the borrowers, now that's gone I am less comfortable.
Just withdrawing what falll out every week at the moment.
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benaj
Member of DD Central
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Post by benaj on Dec 19, 2017 14:56:21 GMT
Sorry I don't come here often enough!
However, I don't think a default rate of 5.5% (on total money lent in Z+) is compatible with a 5%+ rate of return At present I have a default rate of 3.05% of money lent, and a return of 5.15% (this rate is falling steadily. 1 month ago the ratios were 2.85% and 5.45%.
I also look at the ratio bad debt as a percentage of interest. For me this is currently 42%, compared with 39% a month ago. December looks to be shaping up as a bad month.
At present I am "quite concerned". If matters deteriorate further, then Zopa will not be meeting the targets it projects.
Zopa plus will achieve the 5% return in the long run with re-investment enabled. It definitely achieves long term (2 years and longer)return provided having re-investment enabled. The products I like about the Zopa have been discontinued - pre-safeguard and Zopa Classics. At the moment, Zopa Plus does not meet my investment objective.
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Post by geoffp on Dec 19, 2017 22:59:48 GMT
Sorry I don't come here often enough!
However, I don't think a default rate of 5.5% (on total money lent in Z+) is compatible with a 5%+ rate of return.
Zopa plus will achieve the 5% return in the long run with re-investment enabled. It definitely achieves long term (2 years and longer)return provided having re-investment enabled. The products I like about the Zopa have been discontinued - pre-safeguard and Zopa Classics. At the moment, Zopa Plus does not meet my investment objective. You just assert that the 5% return will be achieved. You don’t provide any evidence (as I did), or quantitative analysis of how you expect this to be achieved.
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Post by alazon on Dec 20, 2017 1:33:25 GMT
Assuming the Zopa is right about the default rates under the current economic environment? roughly 5.5% in defaults for the money invested on Zopa plus, are you comfortable with projected return of 5%+ (after the bad debts)? No, not really comfortable with Zopa. At first I thought they were the best thing since the invention of YouTube cat videos, but over the past two or three years my enthusiasm has been dwindling. I don't pay much attention to projected percentage returns, or anything similar. I prefer the simple reality of looking at what I have at the beginning of the year and what I have at the end. With reinvesting turned on, this year from January 1st until November 1st, my earnings are 2.39% pa (my previous thread p2pindependentforum.com/thread/10595/more-stats). Over the 10 years I've been with Zopa I have managed to accumulate a little over £185,000; which to me is a lot of money, and to have this amount only getting around 2.4% pa when elsewhere it could be earning up to 10% pa seems to be a waste. So today I've finally got round to turning off reinvesting (having already lost £411.88 to defaults so far this month - debt repayments £4.73 ha!) and I'm going to start transferring my hard-earned funds elsewhere.
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benaj
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Post by benaj on Dec 20, 2017 11:54:44 GMT
You just assert that the 5% return will be achieved. You don’t provide any evidence (as I did), or quantitative analysis of how you expect this to be achieved. Well, I only started my Zopa plus investment in late March 2017. That's what I can provide after 7 months of investment. | Month | No of loans accuired | Net Monthly Earning as % of Total investment | new default % of total investment occurred in the month | | Mar | 200 | 0 | 0 | | Apr | 400 | 0.01 | 0 | | Jun | 594 | 0.56 | 0 | | Jul | 745 | 0.92 | 0 | | Aug | 882 | 0.82 | 0.33 | | Sep | 961 | 0.48 | 0.21 | | Oct | 1055 | -0.74 | 1.43 | | Nov | 710 | 0.59 | 0.21 |
* Net Monthly Earning = Interest earned - new default
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