ali
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Post by ali on Sept 17, 2016 13:40:36 GMT
...and despite the cut in rates, the £2K I placed with Zopa (Access) a week ago still looks a million miles away from being matched...  The £500 I put in Friday last is about half matched (at 11.6%/7.0%, to be fair). I think a number of people (myself included) decided to stick a bit more in before the rates dropped and that has created a little bulge which will be swallowed in time.
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spiral
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Post by spiral on Sept 18, 2016 10:02:25 GMT
I think a number of people (myself included) decided to stick a bit more in before the rates dropped How does that work then? The rates are projections and the rates you will achieve are those that are available when your money's matched. No amount of "beating the deadline" will improve that because in all likelihood, Zopa were already matching at those rates before their announcement. It's not like a B/S announcing a cut in rates, or am I missing something.
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ali
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Post by ali on Sept 18, 2016 10:56:09 GMT
I think a number of people (myself included) decided to stick a bit more in before the rates dropped How does that work then? The rates are projections and the rates you will achieve are those that are available when your money's matched. No amount of "beating the deadline" will improve that because in all likelihood, Zopa were already matching at those rates before their announcement. It's not like a B/S announcing a cut in rates, or am I missing something. I can't give you chapter and verse. However, the email that zopa sent out gave a specific cut off date, which presumably meant something: We're writing to let you know about upcoming changes to headline rates for Access, Classic and Plus. As of September 8th, 2016 all lender rates will decrease by 0.2%: - Access will reduce to 3.3% from 3.5%
- Classic will reduce to 4.1% from 4.3%
- Plus will reduce to 6.5% from 6.7%
Any money in the queue from September 8th will be lent out at these new rates, so you have time to manage your lending settings if you wish. We will be updating our website later this week to reflect the new rates.
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spiral
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Post by spiral on Sept 18, 2016 14:36:41 GMT
OK, I think I'm still right then.
The headline rate AIUI is an expected average return, not a guarantee. I think the fact that it has duped people into depositing more funds before the "deadline" is a little naughty on Zopa's part.
I think they probably should have said "with immediate effect" unless of course they were still offering the loans out at the higher rates but I don't see how or why that would be the case as borrowers would also have waited until after that date for a cheaper loans and/or Zopa wouldn't have been competitive in the market for those few days.
It's still the case though that regardless of when you deposited, it's when it's lent that will determine the rate.
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Post by wyndstryke on Sept 19, 2016 14:16:08 GMT
I read it the same way Ali reads it. I.e., the change did not come into effect until 8th sept. Seems consistent with the weekly update emails. Of course, the weekly update emails are an average over the last 4 weeks, but the drop hasn't appeared yet, presumably it will from the next weekly update onwards.
Not sure whether these include or exclude my 0.5% early bird bonus.
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