star dust
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Post by star dust on Sept 4, 2014 17:04:28 GMT
Just as an increase in interest rates appeared as a glimmer (or should that be mirage) on the horizon Zopa take yet another turn for the worse.
Logged in to Zopa to remove funds a few moments ago and got a shock to see the three year rate promise down to 3.7%, the 5 year remains at 5.2%. Meanwhile on their forum only one person seemed to have noticed and all the talk is of slow lending speeds. I guess they’ve got too much money / few borrowers on the 3 year market, but even so I think most people toe dip in the 3 year markets and I really wonder (once again) where Zopa think they are going?
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Post by davee39 on Sept 4, 2014 17:16:14 GMT
Just as an increase in interest rates appeared as a glimmer (or should that be mirage) on the horizon Zopa take yet another turn for the worse. Logged in to Zopa to remove funds a few moments ago and got a shock to see the three year rate promise down to 3.7%, the 5 year remains at 5.2%. Meanwhile on their forum only one person seemed to have noticed and all the talk is of slow lending speeds. I guess they’ve got too much money / few borrowers on the 3 year market, but even so I think most people toe dip in the 3 year markets and I really wonder (once again) where Zopa think they are going? Unfortunately nowhere. Their 3 year lending queues have been static, so they are either trying to discourage funds or planning to offer even lower market rates. The Zopa model worked when mainstream lenders offered loans at 19.9% APR. Now there is so much money sloshing around they are struggling to compete. They may be hoping a BOE interest rate rise will rescue them. I would dearly love to be re-investing in Zopa and keep Zopa and RS investments roughly equal, but the glacial lending speed makes it very unattractive.
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c88dnf
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Post by c88dnf on Sept 5, 2014 10:39:40 GMT
Just as an increase in interest rates appeared as a glimmer (or should that be mirage) on the horizon Zopa take yet another turn for the worse. Logged in to Zopa to remove funds a few moments ago and got a shock to see the three year rate promise down to 3.7%, the 5 year remains at 5.2%. Meanwhile on their forum only one person seemed to have noticed and all the talk is of slow lending speeds. I guess they’ve got too much money / few borrowers on the 3 year market, but even so I think most people toe dip in the 3 year markets and I really wonder (once again) where Zopa think they are going? Just had the same jolt of amazement myself. Astonishing really. There is clearly plenty of demand for 3 year loans in the wider marketplace since Ratesetter is shifting money without problems at 4.5% or thereabouts. Indeed, RS's 1-year rate is now on a par with Zopa's 3-year rate. Yet another reason to get money out of Zopa as quickly as possible. Can Zopa survive?
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Post by emoney on Sept 5, 2014 11:07:08 GMT
It's all about market forces, for the low margin loans, you have the likes of tescos and sainsburys offering loans at 4% and these lenders are zopa's main competition, at eMoneyUnion our competition are the specialist lenders like Shawbrook Bank, Nemo Finance and others which are average double digit APR's, hence we are able to pay double digit yields to our lenders.
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Post by davee39 on Sept 5, 2014 11:28:47 GMT
It's all about market forces, for the low margin loans, you have the likes of tescos and sainsburys offering loans at 4% and these lenders are zopa's main competition, at eMoneyUnion our competition are the specialist lenders like Shawbrook Bank, Nemo Finance and others which are average double digit APR's, hence we are able to pay double digit yields to our lenders. Quite correct. However Zopa, in lending to low risk borrowers and, by becoming the market leader, has been seen a low risk investment, making it attractive to those stepping up from FSCS protection & unable to bear any form of Capital Loss.
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c88dnf
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Post by c88dnf on Sept 5, 2014 12:32:27 GMT
It's all about market forces, for the low margin loans, you have the likes of tescos and sainsburys offering loans at 4% and these lenders are zopa's main competition Really? Then how are Ratesetter able to shift £100-150k every single day in 3-year at well over 4% (4.6% as I write)? Better business model springs rather rapidly to mind.
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shimself
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Post by shimself on Sept 5, 2014 13:19:56 GMT
It's all about market forces, for the low margin loans, you have the likes of tescos and sainsburys offering loans at 4% and these lenders are zopa's main competition Really? Then how are Ratesetter able to shift £100-150k every single day in 3-year at well over 4% (4.6% as I write)? Better business model springs rather rapidly to mind. I'm not seeing this. I'm simply auto investing my repayments and interest, only into shorter term, and the recent results are Aug 80loans 5.0% £3k+ Jul 108 4.89% £4k+
Jun 180 5.24 £3k
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Post by geoffp on Sept 5, 2014 13:39:10 GMT
I'm not seeing this. I'm simply auto investing my repayments and interest, only into shorter term, and the recent results are Aug 80loans 5.0% £3k+ Jul 108 4.89% £4k+
Jun 180 5.24 £3k I assume you mean this recycling on Zopa?
I too have no problem with recycling/lending speed on Zopa, though I'm only in the Long market.
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Post by emoney on Sept 5, 2014 13:41:22 GMT
There has been a very interesting and informative update on recently listed Peer to Peer fund P2P Globals website. P2P Global have signed whole loan programmes with Zopa and Ratesetter, would be interested to see which platforms received what amounts.. www.p2pgi.com/Home/NewsLetterJuly2014 |
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Post by brettb on Oct 28, 2014 9:21:15 GMT
Zopa does run occasional promotions - I'm not sure if all lenders get these or just certain segments. Anyway, I just got a 1% bonus for lending £2000 at their current 3 year rate (I guess that's around 5% - at least for the first year of the loan). Lately I've been preferring Ratesetter though, and I've also stuck a bit into Wellesley. Both these platforms have a lot more flexibility in regards to how long you want to lend your money for.
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