Using Zopa to lend money

Ive been following sites like zopa for a while now but never actually lent.

Anyone here successfully lent? Anyone been burned?

6 Comments

Banned

i touched a hot tea pot once, got burned, dont lend money off a teapot is what i say tho dude

gsettle24;5584136

i touched a hot tea pot once, got burned, dont lend money off a teapot is … i touched a hot tea pot once, got burned, dont lend money off a teapot is what i say tho dude



you nutter http://www.clipartof.com/images/thumbnail/2004.gif

Original Poster

Link for people that don't know what i'm talking about..

uk.zopa.com/Zop…eb/

I've tried lending but in the end gave up because there were so many YoYo's who were lending out money to get less return than you could get from a savings account, you can't compete with that.
That was back when the interest rates were at 5% and people were lending out at 1%. It might be a different story now as savings accounts don't make zip anymore.

Original Poster

davepoo;5584184

I've tried lending but in the end gave up because there were so many … I've tried lending but in the end gave up because there were so many YoYo's who were lending out money to get less return than you could get from a savings account, you can't compete with that.That was back when the interest rates were at 5% and people were lending out at 1%. It might be a different story now as savings accounts don't make zip anymore.


Yeah its seems now the rates are between 7-15% from what ive seen, much better than the banks

Titchimp;5584197

Yeah its seems now the rates are between 7-15% from what ive seen, much … Yeah its seems now the rates are between 7-15% from what ive seen, much better than the banks



Keep in mind that you have to pay income tax on the return, if the return takes you into 40% tax then those returns start to look much worse 7% Gross = 4.2% Net

Also, keep in mind that you have to be constantly lending to get the return, as the money is paid back, if you don't lend it out again then you will not get the full return. As i said, my problem was that the money ended up sat around not being lent out even though my rates were better than banks.

*and*, if you decided to stop lending like i did, you can't just call all the loans in, you have to wait for your money to be paid back, if you lent out for 2 years, then your money will take 2 years to return. So compare your loan rates with what you can get for a fixed rate bond or similar from a bank because the money is tied up just like it is in those.
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