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Interested in Peer to Peer Lending?

Interested in Peer to Peer Lending?

If you are interested in Zopa and the funding circle listen again to Radio 4 moneybox on Iplayer or Sundaynight.

There are better low risk investments on the market which offer higher returns.Dont believe the hype!


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18th Aug 2012 18:51

you are still on your hobby horse i see

let it go

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18th Aug 2012 23:41

You mean Trojan Horse?

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19th Aug 2012 07:40

More like broken record

3 weeks ago you issued a warning about these, and ended up sniping from the edges, now seem to want to prolong the agony (boredom).  The programme Fixing Broken Banking gave a good summary and the final comment I heard was that they imagined this could develop into a major sector for personal lending & borrowing.

As I pointed out in your previous warning, some of us have more than £s & % in our eyes when we take part in these activities, ie to cut out the bloody banks, but my 6% is fine for me so if you have lower risk higer returns I'm sure others will want to know where.

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19th Aug 2012 08:02

Look at Citywire,Morningstar,moneyfacts,Trustnet,Bestinvest and Hargreaves Landown.

Corporate bonds and gilts have returned approx 50-60% over last 5 years.

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19th Aug 2012 09:30

And what do they do with your money?

You just don't get it do you?  Or maybe you're just playing games?

As I only got the first & last 5 mins of the programme yesterday I've just listened to it all and, in particular the guy who lends via Funding Circle as well as the Bank of England's representative.  The programme promotes P2P so maybe you're on the way to Damascus?

As I said in the last thread I've lent over £50K in 6 years via ZOPA, as have family & friends and, unless you really respect & trust the banks & their ethics, it's a no-brainer.

As I don't want to follow the path of scientists wasting their time with the fringe global-warming deniers I'll retire from this.

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19th Aug 2012 14:02

well said Paul

its like listening to a record thats stuck - any way im off to do my bit for greece for 2 weeks -, maybe i should take my loan book with me!

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19th Aug 2012 15:34

Calm down dears and smell the coffee!

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By Locutus
19th Aug 2012 16:33

What's the problem with it?

OK I've never invested in any of these schemes but don't understand what you have against them uktaxpal.

Isn't the deal essentially that you can earn 4 or 5 times what you could earn on a safe long-term UK bank deposit, with the downside that there is no FSCS protection?  So on the risk / reward scale it probably lies somewhere between corporate bonds and equities.

Added to that some investors have ethical motives for wanting to cut out the big banks.  That's fair enough as well.

As long as investors understand the risks I see now inherent problem with them. 

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20th Aug 2012 06:44

I  dont think so.

I  dont think so.

Per the moneybox programme:


           Only 4% interest is earned on the grade AAA risk borrowers

            One loan to a company immediately became bad and the lender had to be reimbursed

            The cheif reason why people are borrowing is arbitrage i.e.debt consolidation loans

             as the loans are cheaper.If it was so ethical would borrowers not want to pay savers the same rate or a higher rate than normal to reflect the saving.


You dont incur bad debts on a bank or BS deposit.

 Broken record?Are you back from the past?

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20th Aug 2012 09:33


Since the last post I have tried:


Funding Circle

Rate Setter

Just really out of interest.

Funding Circle is the most fun as you get to bid for loans made to other businesses, however it takes up a daft amount of time assuming you spread your income around. I chucked £2k in and dolling it out in £40 parcels to give a 50 portfolio spread is probably going to take me about 10 hours over 3 weeks!  All for a 8-10% or so return (hopefully) allowing for bad debts. This is an absolutely rubbish use of my time, but its been fun to play banker. Not sure i will reinvest the monies coming back in, I will see how the mood takes me. Some of the loans are upto 5 years so its not a quick return.

Zopa is easy to do, but the rates are not fab. I put £500 in at highish rates and will see what happens with the repayment.

Rate Setter on paper is the least risky as there is a fund to pay out for losses (unless the whole thing goes tits[***] up and then everyone loses) and easy to do. Its probably the closest replacement to a business bank account. My £5,000 deposit will get me 3.5% on a monthly call, or about £15 and I will take a view about using this as my reserve account, or taking the less risky option and taking my 1% in my business bank account ongoing. I could probably get a better rate anyway on that and remove the risk....

Anyway its been interesting to do.

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