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Post by ingenue on Dec 7, 2021 11:37:50 GMT
I wonder if this will be any good. I don't have high hopes.
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aju
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Post by aju on Dec 7, 2021 11:58:52 GMT
Well, I guess that will be me completely out of P2P after 14.5 years (Zopa, Ratesetter, Funding Circle). It's been fun, then not fun, then painful, then fun again, then painful again. I think I escaped relatively unscathed, though. I feel pretty much the same and the experience was not that bad having been on board with Zopa from almost the start and then ratesetter for 2/3 years until their closure. We definitely escaped unscathed from p2p and in profit, still!.
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Greenwood2
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Post by Greenwood2 on Dec 7, 2021 12:00:00 GMT
FAQs make clear they will be aquiring defaulted loans for £0 and there will not be another sale. They say they believe the losses to investors of not having the dafulted loans sold at value will be outweighed by Zopa acquiring late loans at face value. What is not clear (to me anyway) is whether they will be dafaulting more loans between now and 31st January or not.
The writing has been on the wall for some time now and this was predicted, although I thought they would simply stop new investments and let the loans run off. This is definitely 'cleaner', although it robs us of a c4% return on our existing loans over their remaining life, so lets be clear Zopa are not really doing us a favour.
This is the end of the road for P2P for me - I am not interested in the remaining participants. It was fun at the beginning when we could pick loans etc, much less so in recent years. I think the lesson is that private equity and big money is not going to allow small punters to make decent returns which they can take for themselves. I wish Zopa bank well, but fail to see what competitive edge they have over many other such outfits: maybe the Zopa 'name' and loan servicing infrastructure is worth something.
That's a bit cheeky, saying in the large print they will be bought at face value and then in the small print that the face value is zero! Might as well have said that they are not included.
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aju
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Post by aju on Dec 7, 2021 12:10:24 GMT
I wonder if this will be any good. I don't have high hopes. Now that's an interesting thought i didn't catch on initial read. Sadly my instinct though is that they will not be that generous to us if they are truly going to reduce to only being a bank. Mrs aju has a better 1Y rate (1.4%) than they are showing generally for the one year and if they operate as a bank then they will not be that great either. I guess time will tell. Current lend rates are:
Representative example (Usually means you won't get this though sadly
A loan of £10,000 over 5 years will cost you £234.99 per month at a representative 15.4% APR. The total cost after 5 years is £14,099.54, which includes £4,099.54 interest at 15.4% fixed and a £0 fee. The total amount of credit is £10,000.
The rate you are offered will depend on your individual circumstances.
Current Saving rates are:1 Year at 1.37% AER* Fixed | 1.36% Gross**
2 Years at 1.61% AER* Fixed | 1.59% Gross**
3 Years at 1.70% AER* Fixed | 1.68% Gross**
4 Years at 1.71% AER* Fixed | 1.69% Gross**
5 Years at 1.75% AER* Fixed | 1.73% Gross**
Clearly not that bad at current saving bank rates.
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aju
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Post by aju on Dec 7, 2021 12:13:11 GMT
FAQs make clear they will be aquiring defaulted loans for £0 and there will not be another sale. They say they believe the losses to investors of not having the dafulted loans sold at value will be outweighed by Zopa acquiring late loans at face value. What is not clear (to me anyway) is whether they will be dafaulting more loans between now and 31st January or not.
The writing has been on the wall for some time now and this was predicted, although I thought they would simply stop new investments and let the loans run off. This is definitely 'cleaner', although it robs us of a c4% return on our existing loans over their remaining life, so lets be clear Zopa are not really doing us a favour.
This is the end of the road for P2P for me - I am not interested in the remaining participants. It was fun at the beginning when we could pick loans etc, much less so in recent years. I think the lesson is that private equity and big money is not going to allow small punters to make decent returns which they can take for themselves. I wish Zopa bank well, but fail to see what competitive edge they have over many other such outfits: maybe the Zopa 'name' and loan servicing infrastructure is worth something.
That's a bit cheeky, saying in the large print they will be bought at face value and then in the small print that the face value is zero! Might as well have said that they are not included. Another one i missed, i agree that's not a very good look is it. I also see that Jaidev Janardana has put his name to this blog entry www.zopa.com/blog/article/an-update-on-p2p-at-zopaBy 31 January 2022 our investors will receive the full value of their invested balances in their Zopa holding accounts. This means that no investor will miss out on any of the interest they’ve already built up.
I wonder if this is why when a loan went into default after the most recent changes in feb the interest outstanding fields were reduced to Zero values. Ouch: just checked mrs aju and she has nearly £500 worth of loans in default. 
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benaj
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Post by benaj on Dec 7, 2021 12:24:26 GMT
My money is on Assetzcapital being the next one. i’m now In loanpad, prop-lend and unbolted but would like less exposure to property and a larger company. Been with Zopa since 2005 when it was quite funky, and I still have some early adopter share options somewhere in case they IPO! 😁 Will you put more money on AZ? The league table for UK top 10 has dramatically changed over the years. p2pmarketdata.com/p2p-lending-funding-volume-uk/AxiaFunder #9? Qardus #10?
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coogaruk
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Post by coogaruk on Dec 7, 2021 12:31:42 GMT
Another P-P becomes a bank then decides to bin the folk who helped build it so it can keep the profits itself. Ratesetter did it, now zopa have done it to me. Yes it feels personal! Pah! RateSetter didn't become a bank, it was bought by one before it went bust.
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coogaruk
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Post by coogaruk on Dec 7, 2021 12:34:21 GMT
I've been winding Zopa down for the last two years anyway by not reinvesting anything. This just speeds that up for me. Four years for me. Less than twenty quid left in now 
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aju
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Post by aju on Dec 7, 2021 12:34:28 GMT
Another P-P becomes a bank then decides to bin the folk who helped build it so it can keep the profits itself. Ratesetter did it, now zopa have done it to me. Yes it feels personal! Pah! RateSetter didn't become a bank, it was bought by one before it went bust. I never lost a penny on ratesetter's closure. In fact we never lost anything whilst we were with them (nearly 3 years as we came late to that party).
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coogaruk
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Post by coogaruk on Dec 7, 2021 12:37:06 GMT
RateSetter didn't become a bank, it was bought by one before it went bust. I never lost a penny on ratesetter's closure. In fact we never lost anything whilst we were with them (nearly 3 years as we came late to that party). Neither did I. Or anyone else for that matter. Nor did I say you did.
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Post by Harland Kearney on Dec 7, 2021 14:13:11 GMT
We can finally replace this section with Loanpad  Had a small amount of funds with Zopa over the period, never made any losses. I think we all saw this one coming for many months now. |
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Post by baronhardup on Dec 7, 2021 14:26:33 GMT
What caught my eye was this line given as part of the reasons for closure...
'Linked to this, the changing regulation in the sector has made it challenging to grow and remain commercially viable.'
That, to me, implies that P2P is being deliberately regulated out of existence. Maybe that's because to FCA are so useless (or under-funded) at keeping a closer eye on the rogues that is better to make if difficult for P2p to exist at all. Or maybe the banks didn't like the competition! P2P came into existence mostly because the banks were not lending as they repaired their balance sheets following the 2007/8 financial crash. Now they have fixed their problems they want P2P gone.
Always the same for the little guy's like me - used, abused and then abandoned.
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gg
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Post by gg on Dec 7, 2021 14:29:27 GMT
I left ZOPA in 2013 and switched to RateSetter but I still receive a few pence occasionally into my ZOPA account. Probably from defaulted loans.
When ZOPA started, just before the financial crash, it was refreshing to have somewhere other than a bank to invest my savings. How ironic that ZOPA is now just another bank.
Good luck with wherever life takes you after P2P, especially those who remember the original ZOPA forum (I was Gorgeous George) and Listings. Special thanks to the spreadsheet king.
gg
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borofan
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Post by borofan on Dec 7, 2021 14:30:07 GMT
Sad to see it go as I was still getting an early adopter bonus.
I won't be entertaining any fixed rate bank offer.
I will be sticking my Zopa money in a Vanguard all world etf for the next 15 years and just let it compound. Hopefully average about 10% a year.
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Post by overthehill on Dec 7, 2021 14:37:30 GMT
My money is on Assetzcapital being the next one. i’m now In loanpad, prop-lend and unbolted but would like less exposure to property and a larger company. Been with Zopa since 2005 when it was quite funky, and I still have some early adopter share options somewhere in case they IPO! 😁 Will you put more money on AZ? The league table for UK top 10 has dramatically changed over the years. p2pmarketdata.com/p2p-lending-funding-volume-uk/AxiaFunder #9? Qardus #10?
Proplend, somo, assetzcapital, HNW lending are not even in that table so I wouldn't put much stock in that data. Do they only include paying entries ?
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Had a small amount of funds with Zopa over the period, never made any losses. I think we all saw this one coming for many months now.