Thanks for all your comments.

I also lend through Funding Circle (and Zopa and Yes-Secure). I only manage 8.2% (as they tell me) average through Funding Circle, so you are doing well Peter. However, over about 18 months, I have turned £3000 into £3070. A return of 2.3% over 18 months. Not very impressive! I have always thought that lending to business is inherently more risky than lending to individuals, but the rates between Zopa and Funding Circle (before defaults) are about the same.

But there seems to be something else here. Zopa and Yes-Secure seem very particular in who they give loans to. My experience is that the defaults are much less than their stated averages. Maybe I have been lucky? However, Funding Circle seem to be much more 'cavalier' in who they allow loans to.

Beyond that, it seems that more lenders are catching on to the Social Lending fashion, and it does seem that the really good times are over. As NotherHubbard said, he has had difficulty lending some of his money before Christmas.

Mull