Can Zopa help consumers to get better deals on loans?
According to a recent report some consumers are finding that in the current difficult financial climate they are able to access loans at better rates from a loans website, Zopa.com, which is aimed at matching borrowers up with appropriate lenders based on their needs and circumstances. Officials from the site claim to offer amongst the best rates around on loans, and said that this is what has contributed to its success recently, when many lenders are hiking up their borrowing costs.
In the run up to Christmas last year the website is said to have arranged around 150% more loans than it did in the same period the previous year, with an increasing number of consumers turning to the Internet to try and find low cost finance at a time when their finances are strained and they can ill afford to opt for a loan that charges a fortune in interest.
However, consumers should be aware that the strict criteria in place means that many people – around fifty percent based on previous figures – could end up being turned down for finance by the site.
One official from Zopa said that the site exercised a ’stringent vetting process, we don’t have a problem admitting that and don’t want anyone to be disappointed.’
Another official from the group said: ‘As the banks continue to fail their customers despite huge bail outs from the UK taxpayer, it is not surprising that record lending is taking place between the growing number of Zopa members.’
He also said: ‘Creditworthy borrowers shunned by the banks are able to access loans at much better rates. And now that banks have all but given up trying to address their liquidity problems by attracting savers, more and more people are discovering the fabulous returns they can earn on their savings by becoming a Zopa lender.’
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