“As our rates reflect the wider loans market, we’ve decided to adjust the target returns for each of our products. From 31 January the headline rates will be: Access: 2.9%; Classic: 3.7%; and Plus: 6.1%”
It has become apparent that the Bank of England base rate cut of 25 basis points in Summer 2016 has increased the pressure on peer-to-peer lending platforms to compete with bank lending. At the time of the first Zopa rate cut in September 2016, Andrew Lawson cited other P2P platforms as the stimulus for reducing its rates and not necessarily the BoE base rate cut as Zopa wasn’t “as closely tied to the interest rate high street banks [are]”.
Orca Platform analytics: Zopa rates 18-05-16 to 26-12-16
Every Zopa rate change (whether increase or decrease) recorded below was made to the tune of 20 basis points – 0.2%.
9th September ’16: 3.5% to 3.3%
29th October ’16: 3.3% to 3.1%
26th December ’16: 3.1% to 2.9%
*Rate drop 26th December 2016 will come into action on 31st January 2017 for all products.
“As the market conditions continue to evolve, these rates may change again. We carefully monitor and adjust our rates to deliver the reliable, risk-managed returns you’ve come to expect from Zopa. For us, this is the most important thing.”