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Rates fall on peer-to-peer lending
Rates on on main peer-to-peer lenders Zopa, Funding Circle and to some degree RateSetter, have fallen over the last few weeks with lending supply currently outstripping borrower demand. Over the next month this trend will be reversed with an increase of borrowers looking for low rate loans after Christmas.
If borrowers wish to take advantage of this drop in rates they should act quickly before they rise ! In past years the rate of increase in January and February has been quite significant. There are still some cashback offers available, so borrowers can take advantage of low rates and cashback.
The rates have been appalling for some time now, see my comment dated 30/11/12 when rates for monthly access were 2.2% and they have subsequently fallen even lower, whilst 1 year loans were attracting only 3.2% as recently as yesterday, 7/1/13.
It’s still possible to achieve better instant access rates with some bank and building societies therefore my money is staying with those institutions until I see better rates on RS. After all, I’m an investor looking to make money, not a charity!
I sincerely hope that your forecast of increased demand for loans will push rates higher proves correct.
This leaves to much money chasing too little debt, plus some bidders seem happy to lend at negative interest rates.