We’ve received feedback from savers that they would like to lend their money faster. As Zopa aims to ensure that savers’ money is always working as hard as it can to deliver great interest rates, we are outlining the steps we are taking over the coming days to help savers lend their money efficiently.
1. Spreading the word to borrowers
Zopa savers lent over £4m to borrowers last week – a new Zopa record. Zopa now offers the most competitive Representative APR on loans up to £15,000 and this is helping to attract record numbers of smart borrowers looking for the best loan rates.
Savers should be aware that record numbers of borrowers are choosing loans from the ‘Up to 5 years’ market so savers can currently lend their money faster by choosing that option on their Safeguard lending offer. Find out how to change your lending term in our FAQs.
We are continuing to work hard to spread the word to more and more borrowers that they can get a better deal at Zopa than they can from their bank.
2. How we match savers’ money to borrowers
Savers currently see their money matched to borrowers but waiting to be lent while our expert loans team is speaking to the borrower. If the borrower is not approved for the loan the saver’s money returns to their lending offer. Zopa is changing the process for matching savers’ money to loans, so this only happens when the loans team has reviewed and marked the loan for approval. This will help savers to lend their money efficiently.
3. Amount lent to each borrower
Lending in small chunks to many borrowers is good for savers because it means they have a good mixture of different types of loans and should earn a return that is very close to the daily projected return published on the lending offer.
We aim to help savers lend to at least 200 borrowers, lending a minimum of £10 each. Once savers have lent to this many, we’re going to increase the amount lent to each borrower by an additional £10. The main benefit will be to get your repayment money re-lent quickly while still achieving a good blend of loans; when you add new money to your Safeguard offer it will help lend it out more quickly as well.
4. A and B markets
We will be splitting the A and B markets into small, medium and large loan sizes, in the same way as the A* market. This helps improve the speed of lending, as it enables the tracker rates to deliver more accurate and competitive rates which will attract A and B borrowers.
You can find out more about the A and B markets on our FAQ about Loan markets.
Find out more about the amount lent to borrowers in our FAQs.