wapping35
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Post by wapping35 on May 11, 2017 10:31:42 GMT
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Post by misotu on May 11, 2017 10:48:04 GMT
Finally! Excellent news and sensibly only for existing investors initially according to the emails we received this morning  |
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ashtondav
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Post by ashtondav on May 11, 2017 13:33:56 GMT
Finally! Excellent news and sensibly only for existing investors initially according to the emails we received this morning Because all of zopa is closed to new lenders. There's a queue. Actually the queue will get longer as I suspect many zopoids will transfer existing isas to Z, thereby increasing the lending queues for all of us!
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Post by misotu on May 12, 2017 10:03:58 GMT
Doesn't read that way to me:
Having gained full FCA authorisation, we will submit our ISA manager application, which is required in order to offer our IF-ISA to customers. Initially, our ISA will only be available for existing investors.
They are making a statement about a future offering, the timing of which is uncertain, but stating definitively that the ISA will only be available initially to existing investors. I'm not sure what the current position of the lending queue has to do with this statement about a future offering? Unless the email is badly worded. and you know something I don't!
You're right about lending speed when the Zopa IF-ISA is offered. It will be glacial.
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aju
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Post by aju on May 12, 2017 15:54:07 GMT
The one to be aware of, I think, is that if the transfer in is > £1000 and being lent in plus then any defaults could result in bigger losses. I'm hoping that the isa will enable some degree of lending flexibility.
Having said that our existing isa are already in 12 months at moment so I can control the invest rate by only committing relevant values as desired. That said classis is considerably ahead of std bank isa anyway. Although as many know that's only if using reinvest.
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Post by jevans4949 on May 12, 2017 17:10:24 GMT
Reckon they'll probably do the ISA as a safeguarded product (at least initially) - unless anybody knows otherwise.
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aju
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Post by aju on May 12, 2017 17:43:52 GMT
That would make sense. It's only going to be available to existing zopa members but ultimately I guess will be opened up to wider audience of people who may not be so aware of the non safeguarded products higher risks.
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Post by newlender on May 19, 2017 7:03:25 GMT
So do we know how long it will take HMRC to do the paperwork? Assuming that most current investors will pile in, what hope is there for my wife who wants to open an account? I must say that being closed to new business makes re-lending very fast (in Access anyway).
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Post by misotu on May 25, 2017 9:47:30 GMT
Reckon they'll probably do the ISA as a safeguarded product (at least initially) - unless anybody knows otherwise. Well we know otherwise now ... no more Safeguard because, apparently, Safeguard's primary purpose was addressing the historic anomaly of no tax relief on bad debt. 
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ashtondav
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Post by ashtondav on May 25, 2017 10:58:53 GMT
2016/2017 tax year. Average £63,000 invested in 40% C and 60%+.
£3,960 gross income.
Very happy, especially as now RS are giving under 4% for 5 year lenders.
I just wish I could isa it all.
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Post by wyndstryke on May 25, 2017 17:18:39 GMT
Well we know otherwise now ... no more Safeguard because, apparently, Safeguard's primary purpose was addressing the historic anomaly of no tax relief on bad debt. Yeah, before Safeguard was released the tax on bad loans was a big problem, particularly for higher rate tax payers. Was surprised that Safeguard continued past 2015.
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Post by misotu on May 26, 2017 10:48:15 GMT
Tax on bad debt was definitely an issue for higher-rate tax payers, especially those wanting to lend to B and C, but for anyone else it wasn't the key feature of Safeguard. When Zopa set up Safeguard, here's what they said in the "Why choose the Safeguard offer?" section of their announcement blog:
We are introducing the Safeguard offer so you can lend-to-save safely, quickly and earn great returns. Zopa has created the Safeguard in order for you to get back all the money you put into Zopa plus interest on your lending without having to worry about a borrower not being able to pay you back.
Not a word there about tax relief, you'll notice, but now with this sudden withdrawal of Safeguard it's all about HMRC and nothing at all to do with protecting investors.
Safeguard and the Provision fund made p2p more attractive to novices concerned about losing their capital. Unlike the old hands, they were willing to accept reduced rates for reduced risk. Now that Zopa and RS appear to be awash with funds, I suppose making the product attractive to novices and the cautious isn't quite so pressing. Or perhaps the FCA took the view that the existence of Safeguard was potentially misleading for inexperienced investors?
The announcement feels clumsily manipulative to me which is a disappointment because I've been feeling quite positive about Zopa recently!
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Post by misotu on May 26, 2017 11:00:17 GMT
Having said all that, I will put some funds into their ISA. |
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Post by gidoppp01 on May 26, 2017 11:20:43 GMT
I have only discovered the MINUS side of the Zopa. Regardless presafeguard / safeguard / plus, 100% withdrawal is a concern.
I can't even withdraw 100% from safeguard, can someone tell me WHY? Only allow 95% withdrawal from Safeguard!!!!
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amphoria
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Post by amphoria on May 26, 2017 11:30:45 GMT
I have only discovered the MINUS side of the Zopa. Regardless presafeguard / safeguard / plus, 100% withdrawal is a concern. I can't even withdraw 100% from safeguard, can someone tell me WHY? Only allow 95% withdrawal from Safeguard!!!! The problem is that the Safeguard fund does not kick in until there are 4 missed payments. Once this does happen your total investment in the loan is repaid immediately. I think that you will need to keep requesting sell outs for a while to get completely as borrowers could miss a payment and then make a payment, etc.
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