Post by wyndstryke on Oct 21, 2016 16:26:45 GMT
A second 0.2% drop in lending rates across the board.
Lending rate update
Dear xxxx,
Since September, we've seen the borrowing market become significantly more competitive, with at least 6 mainstream prime lenders further lowering their headline rates.
Zopa has always believed in a prudent approach to risk. It's against our principles to lower our criteria to attract riskier borrowers.
As a result, we've taken the decision to reduce our lending rates next week. From October 28th, we'll be targeting the following rates for lender portfolios:
Tick 3.1% in Access
Tick 3.9% in Classic
Tick 6.3% in Plus
If you want to amend your lending settings, it's easy to do so at any time via My Zopa.
If you have any questions or concerns, please get in touch.
Andrew Lawson
Chief Product Officer, Zopa
Dear xxxx,
Since September, we've seen the borrowing market become significantly more competitive, with at least 6 mainstream prime lenders further lowering their headline rates.
Zopa has always believed in a prudent approach to risk. It's against our principles to lower our criteria to attract riskier borrowers.
As a result, we've taken the decision to reduce our lending rates next week. From October 28th, we'll be targeting the following rates for lender portfolios:
Tick 3.1% in Access
Tick 3.9% in Classic
Tick 6.3% in Plus
If you want to amend your lending settings, it's easy to do so at any time via My Zopa.
If you have any questions or concerns, please get in touch.
Andrew Lawson
Chief Product Officer, Zopa
Last time (early september) we saw Zopa's monthly turnover increase from ~£50M to ~£70M once the change came into effect.
p2pindependentforum.com/thread/6383/rates-dropped-2
Obviously a flat 0.2% drop across the board will be impacting Access the most, and Plus the least in relative terms. Another obvious point - Plus is the riskiest one when the economy is under strain, so this is probably why they didn't cut it further (I'm still not going to risk my money on Plus given the long term economic outlook).
Curious change in style ... seems more formal, doesn't repeat the FSCS warning, nor what the previous rates had been and contains less information in general. I preferred the previous one.
. At 3.9% Zopa Classic is looking fairly poor value right now for up to 5 year investment IMHO. I was in auto-reinvestment mode with Zopa with no new money going in but with the likes of 4.2% for 3 years at LendingWorks or 3.75/4.25% for QAA/30 day at Assetz Capital I am likely to switch to an orderly running down of Zopa. This rate could even makes me question my progressive disinvestment (is that a word?) of FC. 