Comments on: Zopa markets or how to cut out the middle-man http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php A trip down personal finance lane. Mon, 15 Mar 2010 17:48:02 +0000 http://wordpress.org/?v=2.5 By: Kirsten http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-42 Kirsten Mon, 23 Apr 2007 18:20:15 +0000 http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-42 All information they reveal on credit ratings is through examples. See here: http://www.zopa.com/zopaweb/public/lending/the-zopa-markets.html So, for instance, an A* rating (the best possible) has the following situation associated with it: <blockquote><em>Paul is married to Pauline and they have two kids - Pauly and Paula. They live in a small village near Nottingham, in a 4-bedroomed house they bought just before little Paula was born 12 years ago. Paul has repaid most of the mortgage already, and will have paid it all off within the next 3 years. Pauline and he have several joint credit cards which they use regularly for large purchases (holidays, electrical goods etc) and which they always pay off on time. All their utility bills are paid via Direct Debit, so they're never late.</em></blockquote> Not sure whether that's a good way of giving borrowers an idea where they'd fit in, but then I don't know much about the borrowing process as such and how strict or flexible it might be... All information they reveal on credit ratings is through examples. See here: http://www.zopa.com/zopaweb/public/lending/the-zopa-markets.html

So, for instance, an A* rating (the best possible) has the following situation associated with it:

Paul is married to Pauline and they have two kids - Pauly and Paula. They live in a small village near Nottingham, in a 4-bedroomed house they bought just before little Paula was born 12 years ago. Paul has repaid most of the mortgage already, and will have paid it all off within the next 3 years. Pauline and he have several joint credit cards which they use regularly for large purchases (holidays, electrical goods etc) and which they always pay off on time. All their utility bills are paid via Direct Debit, so they’re never late.

Not sure whether that’s a good way of giving borrowers an idea where they’d fit in, but then I don’t know much about the borrowing process as such and how strict or flexible it might be…

]]> By: UKMoneyPot http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-41 UKMoneyPot Mon, 23 Apr 2007 11:46:19 +0000 http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-41 I've heard the Zopa lending criteria can be quite strict. Is there any more clarification regarding what they consider to be an 'A' credit score? I’ve heard the Zopa lending criteria can be quite strict. Is there any more clarification regarding what they consider to be an ‘A’ credit score?

]]> By: Kirsten http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-36 Kirsten Sat, 21 Apr 2007 18:54:35 +0000 http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-36 Sorry for the late reply Sam. I think you only get the guaranteed 4.5% on the money that is still sitting in your account - i.e. that <em>isn't</em> lent out. The part that is used for loans will earn according to whatever degree of risk you were willing to accept - so ideally more than 4.5%. On a different note: A friend pointed out that I should probably be careful about accepting a duration of 5 years (which is the current maximum I think), simply because Zopa is not established enough yet and hasn't even been around for this long. Good point ? ! Sorry for the late reply Sam. I think you only get the guaranteed 4.5% on the money that is still sitting in your account - i.e. that isn’t lent out. The part that is used for loans will earn according to whatever degree of risk you were willing to accept - so ideally more than 4.5%.

On a different note: A friend pointed out that I should probably be careful about accepting a duration of 5 years (which is the current maximum I think), simply because Zopa is not established enough yet and hasn’t even been around for this long. Good point ? !

]]> By: Money Watch http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-34 Money Watch Fri, 20 Apr 2007 19:51:10 +0000 http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-34 I'm not sure it's mainstream enough yet to worry the banks, but perhaps you're right. I’m not sure it’s mainstream enough yet to worry the banks, but perhaps you’re right.

]]> By: Cutting Out The Loan Middleman: Zopa / UK Personal finance blog and money information, tips and links / Money Watch http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-33 Cutting Out The Loan Middleman: Zopa / UK Personal finance blog and money information, tips and links / Money Watch Fri, 20 Apr 2007 19:48:08 +0000 http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-33 [...] Pound has a good write-up on how Zopa works which is worth a [...] […] Pound has a good write-up on how Zopa works which is worth a […]

]]> By: Sam http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-32 Sam Fri, 20 Apr 2007 19:43:34 +0000 http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-32 It's been 2 years since it started, so you think that if the banks were especially bothered they'd have done something by now. I'm just trying to find some spare money before giving it a whirl! It’s been 2 years since it started, so you think that if the banks were especially bothered they’d have done something by now. I’m just trying to find some spare money before giving it a whirl!

]]> By: Money Watch http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-31 Money Watch Fri, 20 Apr 2007 19:39:45 +0000 http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-31 I love the idea of it too, although have neither the money to lend nor the need for a loan yet to try it out. Over time, as long as people are getting back what they put into it with a decent amount of interest then it should gain more trust (I think many, myself inculded) are still a little sceptical about it) and therefore more users. It will then be interesting to see if the banks decide to move in a similar direction. I love the idea of it too, although have neither the money to lend nor the need for a loan yet to try it out.

Over time, as long as people are getting back what they put into it with a decent amount of interest then it should gain more trust (I think many, myself inculded) are still a little sceptical about it) and therefore more users.

It will then be interesting to see if the banks decide to move in a similar direction.

]]> By: Sam http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-30 Sam Fri, 20 Apr 2007 18:37:02 +0000 http://simplepound.meewella.com/zopa-markets-or-how-to-cut-out-the-middle-man.php#comment-30 Can you just clarify... You get 4.5% interest on the money you have put in (including the money that has been lent out?) PLUS whatever rate you get for the different loan people, or you just get the 4.5%? Sounds very interesting anyway! I will definitely look into it! Can you just clarify…
You get 4.5% interest on the money you have put in (including the money that has been lent out?) PLUS whatever rate you get for the different loan people, or you just get the 4.5%?

Sounds very interesting anyway! I will definitely look into it!

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