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Post by barnsleybiker on Nov 29, 2021 10:58:11 GMT
Nearly half my Zopa money is in the Q doing nothing, its just slowly building as my lending grows smaller, 50% waiting to be lent out. Zopa tell me money is taking approx. 100 days in any of their products to be lent out. I know these are strange times but I wondered what the rest of you whiz-kids are doing with your inert Zopa money?
Leave it be? withdraw and stuff it under the mattress? invest elsewhere? buy my other half a massive Christmas prezzie and bank the brownie points for later use?
any tips and real experience welcome, thank you.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 703
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Post by coogaruk on Nov 29, 2021 12:17:29 GMT
Withdraw gracefully and forget all about p2p. It's over.
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westy
New Member
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Post by westy on Nov 29, 2021 13:56:39 GMT
Same problem here, going to Loanpad and Wealthify
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Post by Ace on Nov 29, 2021 14:24:42 GMT
The bulk of my ex-zopa funds are already in Loanpad. Better rates, better security and no cash drag. I'm down to a low 2 figure sum in Z now  . |
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Post by mfaxford on Nov 29, 2021 16:59:47 GMT
Some has been going into CL although with the limited loans I'm going to have to find somewhere else as well. I had been planning to keep some in Z but after the last outage I'm not sure I want as much as I planned before.
My only question is whether they'll announce and end to P2P loans before or after I get to a level I'm comfortable leaving in there (possibly sometime around Easter)
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mogish
Member of DD Central
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Post by mogish on Nov 29, 2021 17:12:21 GMT
Jump before you are pushed. It's over.
At least LP has some form of secured lending.
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Post by birdie on Nov 30, 2021 9:50:14 GMT
Lending Works is just as bad , money stood for two month's with no sign of movement.
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trium
Member of DD Central
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Post by trium on Dec 1, 2021 12:39:27 GMT
Lending Works is just as bad , money stood for two month's with no sign of movement. I'd have said LW is a whole lot worse. At least Zopa is lending, just not fast enough. During November my two accounts disbursed 62 loans (33 new originations) totalling just £268.31 (£165 to new loans). I need to shift about £350 a month to avoid a growing queue. That just isn't happening and I'm obliged to withdraw surplus funds. I have less than 7k left in Zopa now.
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Post by c64 on Dec 1, 2021 16:28:36 GMT
I have been varying by a large factor the amount I have queued, and watching the newly acquired loans. The allocated chunk size for each freshly originated loan is 0.5% of my queued funds, plus there are dribbles of secondary loans. I think the allocations are dealt out round-robin among all queued lenders so "position in the queue" is not really important (there used to be a write-up of this on the site, not there any more). The upshot is that the rate of lending in a particular account is proportional to the amount queued, and that the ratio of lent to unlent funds has an equilibrium level it will settle to. That level is the solution to a first order diff eq but it will be different for everyone anyway (repayment rate as proportion of remaining capital depends on how old your loans are on average) and will vary over time (less lending activity in Nov/Dec, typically more in Jan). Having now queued all my funds and turned reinvestment on, I estimate mine will settle around 50/50 eventually.
Is it worth it? This means that a "permanent" Zopa investment now has two components, an FSCS protected half earning zero and a lent half earning 4% or whatever, and I can't have the latter without the former sat there replenishing repaid funds. A ~2%, partially capital protected investment. May as well get full FSCS protection on a five year cash fix instead. I hate long fixes, though, because I don't like the FOMO of interest rates being higher in two years' time - at least with Zopa there is always liquidity on the cash half and I may be able to sell the lent half if I want out.
So my present plan is to leave the cash queued and get the lent funds slowly up to whatever equilibrium level I achieve in the coming months. Then, transfer out the annoying unlent cash to S&S. Then of course my lent amount will start to drop, and while I will relend what little I can, I will transfer cash out once a year. After a very long time, either I'm out, or things pick up, or Zopa shuts it all down anyway, hopefully with some grace.
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Post by barnsleybiker on Dec 1, 2021 16:42:07 GMT
interesting answers, thx everyone. I looked at loanpad, looks simple but rates are 3% instant (ish) access and 4% for 60day delay, there's also an incentive to invest a chunk first off. I might have a dabble with the xs in my zopa account that's sat doing nowt? unless there's a better idea?
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Dec 1, 2021 16:51:52 GMT
interesting answers, thx everyone. I looked at loanpad, looks simple but rates are 3% instant (ish) access and 4% for 60day delay, there's also an incentive to invest a chunk first off. I might have a dabble with the xs in my zopa account that's sat doing nowt? unless there's a better idea? I quite like Elfin Market a slightly different model and has been good so far, but I recommend nothing!
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Post by c64 on Dec 1, 2021 17:03:10 GMT
Nothing against Loanpad and my experience there is zero, but it is a completely different ball game. Their underlying risk is that property market tanks and the security is not enough to repay defaults. Zopa's underlying risk is that the borrowers' future income stream is unexpectedly severed at the expense of their unsecured creditors. I used to have diversification: some secured some unsecured, some personal some property some business. I struggle to find a replacement for Zopa in that portfolio, and business component also comprises shrinking historic loan books with other providers. I have looked at LoanPad and would probably be lending there if my secured property lending was now proving as difficult to originate elsewhere as my personal and business lending.
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Greenwood2
Member of DD Central
Posts: 4,244
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Post by Greenwood2 on Dec 1, 2021 17:43:08 GMT
Nothing against Loanpad and my experience there is zero, but it is a completely different ball game. Their underlying risk is that property market tanks and the security is not enough to repay defaults. Zopa's underlying risk is that the borrowers' future income stream is unexpectedly severed at the expense of their unsecured creditors. I used to have diversification: some secured some unsecured, some personal some property some business. I struggle to find a replacement for Zopa in that portfolio, and business component also comprises shrinking historic loan books with other providers. I have looked at LoanPad and would probably be lending there if my secured property lending was now proving as difficult to originate elsewhere as my personal and business lending. Similar to Elfin Market except Elfin Market is rolling credit rather than a loan.
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Post by c64 on Dec 2, 2021 11:18:50 GMT
I have gotten fat and lazy relying on Zopa for personal unsecured... the twin comforts I am not going to replace easily are (a) they are relatively huge and less likely to suffer overnight platform failure having already survived GFC and Covid so far, and (b) they have bunged me an extra 1% since day one. Ah well. Time to start small again. Thanks Greenwood2 - Elfin seem a promising candidate. Usual danger that withdrawal liquidity disappears at pants-down time to the "surprise" of people expecting a glorified savings account, but hey ho. I like their narrow margin of 1.5% p.a. although I wonder if it is sustainable - Zopa is charging about 4% once everything is wrapped in (+/- depending on individual loan characterisitics). I also like the fact that they have a proven capability to survive the last 18 months. Have there been any signup cashback bungs, or any stats/loan book info to be had? Anecdotal evidence over on their thread here but precious little else.
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Post by Ace on Dec 2, 2021 11:56:20 GMT
I have gotten fat and lazy relying on Zopa for personal unsecured... the twin comforts I am not going to replace easily are (a) they are relatively huge and less likely to suffer overnight platform failure having already survived GFC and Covid so far, and (b) they have bunged me an extra 1% since day one. Ah well. Time to start small again. Thanks Greenwood2 - Elfin seem a promising candidate. Usual danger that withdrawal liquidity disappears at pants-down time to the "surprise" of people expecting a glorified savings account, but hey ho. I like their narrow margin of 1.5% p.a. although I wonder if it is sustainable - Zopa is charging about 4% once everything is wrapped in (+/- depending on individual loan characterisitics). I also like the fact that they have a proven capability to survive the last 18 months. Have there been any signup cashback bungs, or any stats/loan book info to be had? Anecdotal evidence over on their thread here but precious little else. Elfin did have an extra interest boost for equity investors (I think it was an extra 10% of interest), but I don't think there are any current promotions. I still get an extra interest boost payment each month, but as with most things Elfin, the payments are totally opaque. There's no indication as to which of my investments it relates to. As for any info on your loanbook, the answer is a firm no. You will have no idea which loans you are in, or how many borrowers you are lending to, or in what proportion, or what rates. You simply get an interest payment per investment each month with no way of checking that it is in any way correct. Elfin did promise that more detail would be provided in future, but the promise is well over a year old now with no increase in detail or visibility during that time. Also, you have to wait a couple of days after each interest payment for the platform data to become self consistent. And even then the numbers seem a bit out-of-whack occasionally. E.g. my account currently says I have minus £0.42 waiting to be lent!
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