We are making some changes to the lending offer page so Zopa savers can more easily choose and monitor their rates.
The usability of the lending rate dropdown is improved so you don’t need to choose a rate and then check whether it is competitive or not. Visually, the most the striking change is the colour coding of lending offer rates:
- Green means you would have participated in a majority of loans in the last month and so you can expect to lend your money quickly.
- Amber indicates slow lending because your participation is low.
- Red means you are very unlikely to lend any money or your rate is very low and you could get a better rate and lend just as quickly.
Zopa is a dynamic market place and lending rates are influenced by the supply and demand from lenders and borrowers. In the last few months thousands of new Zopa lenders have joined while the competition for borrowers with banks and other lenders has intensified. To make sure you continue to get the return you want and are not disappointed by slow lending you should review your lending offer regularly.
We are adding an estimate of how long it will take you to lend your money across all the markets you are participating in. This estimate is personalised to you and the rates you’ve chosen but it is of course only approximate. Lender participation rates will be displayed more prominently to give you an indication of the speed of lending in each market. Lending forecasts of the amount of money which could be lent per market will be removed as many Zopa savers felt they caused confusion.
We are adding an expected pre-tax return after fees and defaults. How fast you lend is important and the more quickly your money is put to work the more interest you will earn. However, you should always ensure the rate you offer takes into account the small risk of default and this change will allow you to more easily compare the pre-tax net return you can expect from each market. A is our largest and safest market and the rate you set in A or B should give you as least a good a net return as A. You will now receive a warning if this is not the case, although you are free set any offer rate you wish.
Finally, we are also adding some information on how the banks and other lenders are advertising to the safest borrowers on price comparison sites. This is to give more insight into what borrowers are looking for and to show lenders that they are competing against banks as well as other Zopa lenders.