Jump to content
House Price Crash Forum
Guest Guest_bound_*

Rates Rising - I Have Noticed It On Zopa

Recommended Posts

Guest bound

I have been noticing this for the last month.

I am able to charge over 8.2% for a loan to prime credit rated borrowers now and the money gets snapped up.

I am going to move my rates above 9% and see what happens.

I have noticed the rates on ZOPA in the general market have all been increasing significantly lately.

Seems like the same thing is happening with personal loans and mortgages.

For whatever reason credit markets everywhere are tightening.

People are less willing to lend money, or there is less of it around.

We are on the next leg down and this is really going to scare everyone as they think we stopped the world falling apart.

Share this post


Link to post
Share on other sites
I have been noticing this for the last month.

I am able to charge over 8.2% for a loan to prime credit rated borrowers now and the money gets snapped up.

I am going to move my rates above 9% and see what happens.

I have noticed the rates on ZOPA in the general market have all been increasing significantly lately.

Seems like the same thing is happening with personal loans and mortgages.

For whatever reason credit markets everywhere are tightening.

People are less willing to lend money, or there is less of it around.

We are on the next leg down and this is really going to scare everyone as they think we stopped the world falling apart.

Would be interested if you could post regularly on this - the rates were too low for me to lend - maybe that is changing...

Share this post


Link to post
Share on other sites

I never understand why prime rating customers would ever use Zopa - and it's that risk that's put me off putting any money in there. For example, whenever I log on to my bank account I'm told I can have £25,000 in 2 hours at 7.9% and I'm just a normal punter - I doubt I have the best credit rating in the world - last time I checked it was 997 tho it gives no indication of to what the total is.

Why would people being offered that kind of rate by a bank bother with writing a begging letter on Zoppa and then borrow at punative rates?

Share this post


Link to post
Share on other sites
I never understand why prime rating customers would ever use Zopa - and it's that risk that's put me off putting any money in there. For example, whenever I log on to my bank account I'm told I can have £25,000 in 2 hours at 7.9% and I'm just a normal punter - I doubt I have the best credit rating in the world - last time I checked it was 997 tho it gives no indication of to what the total is.

Why would people being offered that kind of rate by a bank bother with writing a begging letter on Zoppa and then borrow at punative rates?

Agreed, I was just given approx £20k interest free from MBNA for 9 months on credit card, and seem to be pre approved for equally large sums from numerous banks.

Share this post


Link to post
Share on other sites
Guest bound
Would be interested if you could post regularly on this - the rates were too low for me to lend - maybe that is changing...

I'll try and remember. However these are the rates at the moment.

Here is what I lent my last lot out at and it all got snapped up between logins, I am going to bump it all up about .5% however.

A* 36 8.10%

A 36 8.50%

B 36 9.60%

C 36 11.40%

Y 36 11.30%

Here is the general market right now for 36 month loans

A* 8.1

A 8.41

B 9.07

C 11.77

Y 11.08

I have found you can general lend stuff above the market and it will get eaten up.

It is a lot easier to loan money now than a couple of months ago when I started.

I haven't got a lot of money in there as I am still playing around.

Share this post


Link to post
Share on other sites
I have been noticing this for the last month.

I am able to charge over 8.2% for a loan to prime credit rated borrowers now and the money gets snapped up.

I am going to move my rates above 9% and see what happens.

I have noticed the rates on ZOPA in the general market have all been increasing significantly lately.

Seems like the same thing is happening with personal loans and mortgages.

For whatever reason credit markets everywhere are tightening.

People are less willing to lend money, or there is less of it around.

We are on the next leg down and this is really going to scare everyone as they think we stopped the world falling apart.

Hi

Yes - I've been lending in the A market over five years at 10% and that's been snapped up this week. Previously this has been around 8.5% - 9%

I had £250 in at the start of the week and this is down to £70 ( at £20 per loan ) - I've pulled that Loan offer and replaced with 10.5%

I do a weekly Zopa Analysis based on their market data download. I've downloaded this week's data but won't have it available until the weekend as I tend to do the analysis on the train back oop north.

If anyone is interested, please PM me and I can e mail out the analysis.

M21er

Edited by M21er

Share this post


Link to post
Share on other sites

I have a loan through Zopa.

The problem with banks is that they only seem to give low APR on larger loans

My loan was for £3000 for a used car. I got a an APR of less than 10% when the Zopa fee is included.

I am an A rated borrower. I found banks rates far higher for this amount of money.

I like the idea that my interest is going to an actual person, who has taken time to save, rather than a faceless bank.

Also, with Zopa, I can pay back early with no penalty, a major incentive!

Share this post


Link to post
Share on other sites
Guest bound
I have a loan through Zopa.

The problem with banks is that they only seem to give low APR on larger loans

My loan was for £3000 for a used car. I got a an APR of less than 10% when the Zopa fee is included.

I am an A rated borrower. I found banks rates far higher for this amount of money.

I like the idea that my interest is going to an actual person, who has taken time to save, rather than a faceless bank.

Also, with Zopa, I can pay back early with no penalty, a major incentive!

From the lending side I also like the idea of lending money to people. You can look at what they are borrowing the money for. It is much less faceless.

Plus the less money I give to the banks the better.

I will see how my experience with Zopa goes, which is all positive so far, and increase the amount of money I have with them.

Hopefully eventually I can have all my money in non-bank related resources.

But how does one maintain liquidity? ...

Anyone got any suggestions?

Share this post


Link to post
Share on other sites
I have a loan through Zopa.

The problem with banks is that they only seem to give low APR on larger loans

My loan was for £3000 for a used car. I got a an APR of less than 10% when the Zopa fee is included.

I am an A rated borrower. I found banks rates far higher for this amount of money.

I like the idea that my interest is going to an actual person, who has taken time to save, rather than a faceless bank.

Also, with Zopa, I can pay back early with no penalty, a major incentive!

For small loans just get a balance transfer card - last one I used was Virgin to change the car - 15 months at 0% - just had to use Egg Money as a mule to get it to the current account. Even if you have the cash its sometimes better to borrow at 0% depending on the fee and the penalties for releasing your cash. I can't see any logical reason to borrow at 9-10%+.

Share this post


Link to post
Share on other sites
For small loans just get a balance transfer card - last one I used was Virgin to change the car - 15 months at 0% - just had to use Egg Money as a mule to get it to the current account. Even if you have the cash its sometimes better to borrow at 0% depending on the fee and the penalties for releasing your cash. I can't see any logical reason to borrow at 9-10%+.

Well, for a start, I bought privately, with cash.

Share this post


Link to post
Share on other sites
From the lending side I also like the idea of lending money to people. You can look at what they are borrowing the money for. It is much less faceless.

Plus the less money I give to the banks the better.

I will see how my experience with Zopa goes, which is all positive so far, and increase the amount of money I have with them.

Hopefully eventually I can have all my money in non-bank related resources.

But how does one maintain liquidity? ...

Anyone got any suggestions?

I think a lot of people are thinking the same as you. On a slightly different tack there is the investment side. the dust is still clearing from the momentous financial instability there has been the last two years, when the dust settles (for some) and there is a clearer picture as to which companies/countries will emerge from this mess and which ones won't (possibly permanently) then investors will begin to look again at where and who to put there money with long term. I suspect Asian countries and companies will do rather well over the coming decades and those countries that have hitched themselves to the banking sector will do incredibly badly. I expect a long drawn out de-investment in the likes of the UK/US.

Share this post


Link to post
Share on other sites
Well, for a start, I bought privately, with cash.

.. I don't understand - so did I. Only needed the money for 14 months until a bond expired so saw no reason to pay 10% when I could get 0% (well technically 2.5% after the transfer fee).

Share this post


Link to post
Share on other sites
.. I don't understand - so did I. Only needed the money for 14 months until a bond expired so saw no reason to pay 10% when I could get 0% (well technically 2.5% after the transfer fee).

So how do I get £3000 in cash from a credit card, at 0% and with no other funding?

Share this post


Link to post
Share on other sites
So how do I get £3000 in cash from a credit card, at 0% and with no other funding?

Wrong forum really but I thought everyone knew this. All you need is your trusty Egg Money card. It's unique in that whilst it's still a credit card, it allows positive balances and more importantly allows you to withdraw positive balances with no fee to a current account.

So apply for one of the top balance transfer cards - currently MBNA and their resellers I think. Transfer the non-existent balance from the Egg card to the new one. 1-3 days later you'll have a +ve balance on the Egg card*. Then just withdraw that as cash and you've got the money in your current account - all you pay is the initial transfer fee from the new card and the balance of course - make sure you pay it before the 0% period is up. Takes about 10 mins of effort and a 5 day wait but it's worth it for the interest savings in loans you intend to pay off within the interest free period.

*Some people will argue this is fraud as you're not transfering an existing negative balance. Depends on your morals I guess :D

Edited by impatient_mug

Share this post


Link to post
Share on other sites
Wrong forum really but I thought everyone knew this. All you need is your trusty Egg Money card. It's unique in that whilst it's still a credit card, it allows positive balances and more importantly allows you to withdraw positive balances with no fee to a current account.

So apply for one of the top balance transfer cards - currently MBNA and their resellers I think. Transfer the non-existent balance from the Egg card to the new one. 1-3 days later you'll have a +ve balance on the Egg card*. Then just withdraw that as cash and you've got the money in your current account - all you pay is the initial transfer fee from the new card and the balance of course - make sure you pay it before the 0% period is up. Takes about 10 mins of effort and a 5 day wait but it's worth it for the interest savings in loans you intend to pay off within the interest free period.

*Some people will argue this is fraud as you're not transfering an existing negative balance. Depends on your morals I guess :D

Interesting. I've never heard of that one.

As it happens, I have got a 3 year loan, so I would have had to transfer the balance again at least once.

Also, I've already have one credit card balance that I have to shift around every 12 months or so.

To be honest, I don't mind paying the interest to Zopa members. It's a fair deal, and I know real people are benefiting.

Share this post


Link to post
Share on other sites

On another point, you refer to a "begging letter". It is true that you can plead your case to borrow money.

Most, however, borrow on the markets, which simply involves an application, similar to that for any other loan.

I certainly didn't beg or plead. The nearest I came was to give the purpose for the loan as "buying a used car"

Share this post


Link to post
Share on other sites
On another point, you refer to a "begging letter". It is true that you can plead your case to borrow money.

Most, however, borrow on the markets, which simply involves an application, similar to that for any other loan.

I certainly didn't beg or plead. The nearest I came was to give the purpose for the loan as "buying a used car"

Yes - sorry about that - wasn't trying to imply you were begging or that anyone else is - I just remember reading some of the Zopa applications in the past - the full page ones they put up as examples - some were quite entertaining :lol:

To be honest I don't really know how it works - I considerd it in the past as both a potential customer and investor. As a customer it was too expensive, and as an investor it just didn't seem quite right for the reasons stated in my post on the last page.

Your example does show there are valid reasons for people with good credit histories to consider it - so I may have to investigate further.

Share this post


Link to post
Share on other sites

I've been putting £150 per month into Zopa for the 8 months and have noticed the same thing. My original lending offers were 8-10% and were taken up slowly , but were taken, then had to drop the rates to 6-7% and now they are back up again and are moving easily. The one concern might be if some organised fraud was just taking the money with no intent to repay, but it would be hard to pull off in such small amounts.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   291 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.