The Anonymous Widower

Are Zopa Rates Dropping?

I have been looking at my Zopa spreadsheet and it would appear that the lending rates now, are not as high as they were.

If I look at the average rate on all loans so far in January 2013 it’s 6.33%. In January of 2012, 2011 and 2010, the rates were respectively 6.27%, 6.90% and 7.43%.  As I’ve been using the same lending philosophy for a few years, it would appear that rates have fallen.

Bad debt at the end of 2010 was £334.53, with 2011 and 2012 being £408.24 and £466.23.

So rates may be dropping, but bad debts seem to be well under control.

I have wondered if that money from the government and new borrowers will depress rates, but as the ratio of money available to money required seems to vary quite a lot, it is probably classic supply and demand.

I shall watch this variability with interest.

January 15, 2013 - Posted by AnonW | Finance | Banks, Zopa