What’s Happened Recently That You Need To Know

Click "Learn" to get help

By on 23 June, 2017 | Read more by this author

We're not a P2P “industry news” site, but we do like to report news if it directly helps individual lenders to make better lending decisions, which is our entire raison d'être.

A lot of news like this has occurred over the past six weeks or so, so here's a round-up:

Risks at Zopa have risen

  • Zopa has ditched its reserve fund, called “SafeGuard”, to cover bad debts.
  • The interest you earn on its new Zopa Core lending account has just nudged up from 3.7% to 3.9% compared to its previous “Zopa Classic” account.
  • Consider pausing new investment into the new Zopa Core product until 4thWay has conducted new stress tests.


The above changes probably mean the risks have gone up for those who used Zopa Classic and move on to Zopa Core. 4thWay will conduct new stress tests on Zopa's loanbook shortly to re-check the risks and see if its new lending account will still earn a 4thWay PLUS Rating.

The Zopa Plus lending account has been unaffected by these changes.

No fee-free early access at Zopa any more

  • All accounts now charge a 1% fee.
  • This is still a low fee for early exit, easily and quickly covered by interest earned.


Like its previous Zopa Classic account, the new Zopa Core account charges 1% for you to leave early. Zopa no longer offers an easy-access account that is fee-free to exit early.

However, 1% is a one-off fee and it's not large compared to earning around 4% per year. After you have been lending for just a few months the interest should already have covered any future fee, barring exceptional bad debts.

New IFISAs (tax-free lending accounts) launched recently

The following have launched IFISAs in recent weeks:


Read everything you need to know about IFISAs, and see the full list of 18 available tax-free accounts, in The IFISA (P2P ISA) Guide.

Assetz Capital launches new property lending account

  • Assetz Capital* has launched a new product called the Assetz Capital Property Secured Investment Account.
  • One of 4thWay's experts will need to assess this separately and will write a mature review for the next newsletter.

Wellesley pauses P2P lending

  • Just to be clear that the lending products currently offered by Wellesley & Co.* are not P2P lending accounts and they therefore have additional risks.

One key strength of peer-to-peer lending is that each borrower owes you and not the P2P lending site in the middle, giving you a huge amount of protection in the event the P2P site goes bust. Non-P2P lending doesn't necessarily offer you the same or similar levels of protection. (Read The Five Key Risks In Peer-To-Peer Lending.)

LendingCrowd launches a self-select IFISA

  • LendingCrowd* had already launched an IFISA, but it's great to see it has launched another one where you can choose the loans to businesses that you will lend in for yourself.
  • Please, please, please do not concentrate more than 1% of your money in a single business loan and preferably no more than 0.5%.

Read this recent article, which suggests rules for selecting business loans for yourself (albeit using Crowd2Fund and not Lending Crowd as an example). Read more about LendingCrowd's record in LendingCrowd On Track For A Top Rating.

Landbay's fixed-rate accounts offer swifter lending

  • Landbay's fixed-rate lending accounts appear to offer swifter lending over its tracker products.

We have warned over the past six months or more that Landbay* has been approving very few new loans and this likely means that lenders have money sitting around in Landbay accounts.

Over the past few weeks though, Landbay has completed £1.3 million in mortgages and it expects that all lenders' cash that was in the queue for its fixed-rate lending accounts will be lent out.

Lenders with cash waiting for tracker loans face an expected wait of another two months, so it looks like Landbay is finding more borrowers for fixed deals, which might make fixed-rate lending faster at Landbay.

The opinions expressed are those of the author and not held by 4thWay. 4thWay is not regulated by the FSMA and does not provide personalised advice. The material is for general information and education purposes only and not intended to incite you to lend.

Journalists, bloggers and specialists writing for 4thWay are subject to 4thWay's Editorial Code of Practice. For more, please see 4thWay's terms and conditions.

*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from Assetz Capital, Landbay, LendingCrowd, Proplend, Relendex and Wellesley & Co., and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.

Leave a Reply

Your email address will not be published. Required fields are marked *

Today’s average interest rates

4thWay® Forecast Returns Index: 4.89%

Showing average expected interest rates for individual lenders after fees and bad debts if you lend today.
Read about the first P2P lending index.

What is the “4thWay”?

There's the savings way, the property way, the stock-market way, and now there's the peer-to-peer lending way. The 4thWay® to save and invest.
Learn more.

What does 4thWay do?

We help people save and make more money, more safely when they cut out the banks and lend directly to other people and to businesses.

Why use 4thWay?

4thWay® is shaped by investors, bank risk modellers and a senior debt specialist, and we're governed by our users to ensure our comparison services and research are trustworthy and complete.

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
Back to top