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…
]]>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 ? !
]]>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.
]]>Sounds very interesting anyway! I will definitely look into it!
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