Encash / YES-secure are still silent

May 1st, 2012

In the recent interview on Money Box on Radio 4 (where Ian Gurney of P2P Money and an Encash / YES-secure lender also made some comments) Chandra Patni, director and founder of YES-secure admitted mistakes had been made and explained their rational in reducing the maximum lending rates.

However despite this, there has still been no response to the growing number of comments and questions from lenders on the Encash / YES-secure forum.  This will probably run on for a while, and we wish Encash / YES-secure and their lenders the very best in resolving their troubles, but this story isn't helping the peer-to-peer industry in the UK where this is a good rapport between lenders and the companies themselves.

Perhaps the real story should be that default rates for the mainstream peer-to-peer companies in the UK - Zopa, Funding Circle, RateSetter and ThinCats - while showing small signs of increase, are still excellent compared with their estimates, especially in a time of recession.  We passionately believe that peer-to-peer lending is still a good deal for both borrowers and lenders.

New forum for peer-to-peer lending and borrowing

April 29th, 2012
P2P Money

P2P Money has launched a new forum.  It isn't our intention to duplicate the existing forums, such as Zopa Talk or the independent Funding Circle Forum, but to provide a central link to each of these valuable resources of knowledge. Where an existing forum does not exist, we'd be happy to create one.

With ThinCats, the peer-to-business lender, we've created a forum for them.

Zopa to reintroduce 2 and 4 year loans

April 24th, 2012
Zopa

Today Zopa announced that in May they will be reintroducing 2 and 4 year loans.  The existing 36 and 60 month lending offers will be renamed "shorter" and "longer", with "shorter" encompassing the 2 and 3 year loans, and "longer" covering the 4 and 5 year loans.  RateSetter also allow borrowers of 5 years loans to repay over 4 years.

Here is what Zopa said in their email to lenders:

What is happening?
Up to now we've operated 36 and 60-month markets from A* to Y. From the second half of May, these will become Shorter and Longer markets - still covering A* to Y borrowers. In Shorter markets, you will be able to lend money to creditworthy borrowers looking for loans of 2 or 3 years. In Longer markets, you will be able to lend money to those wanting loans for 4 or 5 years.

Why make the change?
Offering loans between 2 and 5 years means Zopa attracts more of the safest borrowers in the UK, so you can lend money out quickly and make a great return on your savings.

How will this affect my lending?
We are not changing the way you lend your money: you choose your markets from A* to Y and lend your money in small chunks to many borrowers.

Zopa originally removed the 12, 24 and 48 month loans several years ago, citing that it was becoming difficult for lenders to manage the large number of different markets.  In addition the large APR on the 12 and 24 month loans were seen as being unattractive.  It was also stated that there was much less take up on the 48 month loans than either 36 or 60 month.  Since then the rate on Zopa loans has dropped, and they have changed their fee structure.

We believe the reintroduction of 2 and 4 year loans and the simplification of the lending offers is a good idea.

Funding Circle passes the £30million mark

April 23rd, 2012
Funding Circle

Today Funding Circle passed the £30million mark for the total amount of loans that it has arranged.  It is currently arranging loans at rate of around £80,000 per day.  This is another noteworthy milestone for Funding Circle.

One other interesting statistic is that £5.4million of loans have been traded between lenders, which highlights the success of their secondary market.

P2P Money in the press

April 22nd, 2012
P2P Money

We were pleased to see some of our data published in the Financial Times this weekend, and we get a mention on the FT Money Show podcast.

The P2P money website publishes data on the financial returns from the major P2P companies, before and after fees, bad debt (predicted and historical) and taxation, for both individuals and businesses. We are the only website to currently publish this information.

The article in the Financial Times was concerning the difference between the headline and actual rates, due to bad debts, fees and taxation. The P2P money website believes it is important to understand these differences, but we are still passionate that peer-lending can make a positive difference to borrowers and lenders.