Thursday 25th January 2007
Online marketplace Zopa is urging its users to compare loans in order to secure the best deal in 2007.
Zopa is calling itself the "best value benchmark" for those seeking to compare loans for the lowest interest rate.
Now it stresses that borrowers with good credit ratings should expect to be paying a rate of 5.2 per cent at the most.
James Alexander, chief executive officer of Zopa, said that those paying a higher rate are "either cross-subsidising others with poorer credit records borrowing from the same lender, or lining the already bulging pockets of their bank".
"The new alternative that Zopa offers is providing consistently the best rates available to borrowers," he added.
The 5.2 per cent rate is quoted by Zopa as the level borrowers should expect to pay on a £3,000 loan over three years.
For those borrowing £1,000 over the same period, the predicted rate falls to 4.9 per cent, Zopa claims.
Zopa works on a policy of "social lending" in which individuals provide funds which are then distributed across a number of different borrowers.
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