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Post by blanik on Sept 17, 2018 15:24:33 GMT
Hi,
Just picked up a new loan and noticed that the Borrower rate at 14.14% was much higher than the Investor rate of 4.21%. The only unusual thing is the term.
core, A*, term=10, withdrawal pending, £10, Other, safeguard=no
So looks like a new loan, not a purchased rapid return.
Any ideas?
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aju
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Post by aju on Sept 17, 2018 16:38:06 GMT
Hi, Just picked up a new loan and noticed that the Borrower rate at 14.14% was much higher than the Investor rate of 4.21%. The only unusual thing is the term. core, A*, term=10, withdrawal pending, £10, Other, safeguard=no So looks like a new loan, not a purchased rapid return. Any ideas? Snap. all the same data, mine was acquired on the 13th. That's a 9.93% spread but I guess its very short loan which will increase the rake I suppose. Curiously though other A* 12 month ones have much smaller spreads on them. Looking at other a* loans does not seem to warrant such high spread. The loan is for £2252 much lower than other loans although I notice that 1000 over 12 mths don't get that high either. [edit1]Looks like Mrs Aju picked it up too!. [edit2] Oops looks like we picked it up in both of our 2 accounts, so lending @£10 turned into £40 overall 
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benaj
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Post by benaj on Sept 17, 2018 18:12:08 GMT
10%, sounds about right. www.uswitch.com/loans/borrowing 1k for 1 year with zopa is 9.5% apr, RS offers cheaper rate for 6.7% |
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wapping35
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Post by wapping35 on Sept 17, 2018 19:07:26 GMT
It is a commuter club loan. I have had a few. Pasted below from the August 17th weekly email.
The fee spread is large but I suspect that is due to the short term nature of the loan (10mths v the usual 36-60mths)
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In case you missed it: Zopa loans to take the sting out of commuting
A couple of weeks ago, we let you know about our newest partnership with CommuterClub.
From August, Zopa loans will be used to fund annual season tickets for commuters: making it easier and more cost-effective for people to buy tickets online and spread the cost over monthly installments.
The first of these loans have now been matched – and we're adding more each day. So check your loan book to see if you've been matched to an A*, 10-month loan, and feel good that your investment has helped someone get a better deal on their commute.
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zlb
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Post by zlb on Sept 17, 2018 22:01:58 GMT
It is expensive, in line with their/Z other short term loans which appear to indicate that if someone Has to borrow 2k that means they have no savings, aren't able to save through the year and no family to lend, etc. Raising the question what makes them A*?
The last time I asked, an annual ticket gets three months free. The time before that, I was told two months are free. The cc loan offers an equivalent of 1 month free. Presumably the interest cost therefore is the equivalent of 1 or two months. Possibly this working is incorrect and that I'm referencing the wrong kind of ticket.
It seems a move from Z that conveys more stability. Wonder what the commuter club defaults were though. Maybe they were finding it an issue and were glad to find someone to bear that load.
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zlb
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Post by zlb on Sept 17, 2018 22:11:04 GMT
10%, sounds about right. www.uswitch.com/loans/borrowing 1k for 1 year with zopa is 9.5% apr, RS offers cheaper rate for 6.7% didn't know they were listed here. Thanks. Only thing is, Z aren't on first screen of phone and they're very marginally more expensive than Sainsbury etc.
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