A few months ago, we launched our new range of lending products. The rates we set reflected the marketplace at the time. Since then, the markets have changed, giving us the opportunity to reassess our products and make sure we’re giving the best service possible to our lenders and our borrowers.
In light of this, we’ve made the following changes:
We’re reducing Classic’s rate from 4.5% to 4.3%. Currently, Classic lenders are waiting on average 4 days for their loans to be matched. The new rate will come into effect Tuesday, June 7th to ensure that money in the queue today can be lent out at the current rates and give you time to decide whether to stay in Classic or recycle your repayments in Plus or Access.
Plus will be increased from 6.5% to 6.7% as of, Friday, May 27th. Plus has gone from strength to strength, and right now we are targeting yields of 6.7%. We’ll continue with the same mix of risk markets we currently have in Plus.
These changes to headline rates will only affect new loans.
It’s an iterative process, and these changes aren’t forever: when the time is right we’ll assess again, and depending on the markets, make further tweaks.
It’s easy to move your money around in Zopa, so if you’re unhappy with the rate decrease, you can opt to have your repayments recycled through Plus or Access at any time.
As a reminder our rates reflect the annualised projected return after expected losses on money lent out. When you lend your money your capital is at risk. Our risk statement has all the details.
If you have any questions our Customer Services team are on hand to answer them.