A quick update on my Zopa progress, having posted previously on the topic here and here. Zopa, the peer to peer lender, had a publicity drive in January which was mostly targeted at borrowers. Demand did in fact go up after the campaign but, overall, rates have held fairly steady, at levels below those of this time last year, owing to the fact that there are more lenders in the market too. The current zopa for 36 month A* is 6.6%-6.7%, which will probably deliver around 5% before tax.
Because I did not chase rates down, I did very little lending over the winter, although it has picked up a bit recently. At present, I find that I am getting a return of 6.15% before tax, but after fees and bad debt, where bad debt includes not only defaults (3) but all late payers (3) as well. However, recent disbursement rates will tend to pull this figure down as I am concentrating more on the A* category.
I'll continue to recycle money as it comes back, since I am fairly happy with what has happened so far, but I am not putting any more money in until rates start to rise. Equally, if rates fall further, I'll pull money out as it becomes available.
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