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Post by newlender on Dec 17, 2018 10:30:06 GMT
Since the end of last week I have acquired 14 identical A* Core loans; 11 months' duration; borrower rate = 11.61%; investor rate = 4.2%. I'm just interested about how this could happen and why Zopa would have fixed such a wide difference in rates. They are all to different borrowers for loan purpose 'Other'.
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benaj
Member of DD Central
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Post by benaj on Dec 17, 2018 11:06:27 GMT
May be give Zopa a ring, it doesn't seem right. I know recently Zopa's been offering competitive rates on comparison web site, from 2.8% apr, and even 9.5% apr 1 year for a small 1k loan. www.uswitch.com/loans/ |
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Post by newlender on Dec 17, 2018 13:38:11 GMT
Had a very quick reply from Zopa. They are Commuter Club loans which are A* because the ticket can be cancelled if necessary and the cost refunded. So if anyone sees loans for 11 or 12 months with a pretty wide gap between borrower/investor rates, there's the explanation.
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benaj
Member of DD Central
Posts: 4,855
Likes: 1,591
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Post by benaj on Dec 21, 2018 23:23:27 GMT
Had a very quick reply from Zopa. They are Commuter Club loans which are A* because the ticket can be cancelled if necessary and the cost refunded. So if anyone sees loans for 11 or 12 months with a pretty wide gap between borrower/investor rates, there's the explanation. We shall see if this is the case as one of mine has missed their first payment! I wonder if the ticket get cancelled immediately or after 4 months of missing payment. www.commuterclub.co.uk/faq/credit-detailsIt seems commuter club loan is a secured loan. The ticket will be suspended for non payment and a £12 processing fee. So, Zopa could actually focus on Zopa CC instead of zopa core for 4.2% instead of 4%.
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