Zopa to unveil isa deals

Zopa to unveil isa deals

Peer-to-peer platform Zopa is to launch a range of lending products ahead of the introduction of the Innovative Finance Isa in April.

Zopa Access, Zopa Classic and Zopa Plus will be offered within the Isa wrapper. The three new products will be unveiled in mid-March.

Zopa AccessZopa Classic Zopa Plus
Safeguard lendingYesYesNo
ReturnsAround 3-4 per cent after expected defaultsAround 4-5 per cent after expected defaultsAround 6-7 per cent after expected defaults
AccessNo fee to see loans1 per cent fee to see loans1 per cent fee to sell loans
Isa eligibleYes YesYes

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Andrew Lawson, chief product officer of Zopa, said Zopa Plus could deliver returns of 6 per cent to 7 per cent.

Zopa Plus targets customers who are comfortable to lend their money through the lender’s diversification model, and do not require the additional security of safeguard.

The specific rates for each product will be announced on 1 March.

Adviser view

Darius McDermott, managing director at Chelsea Financial Services, said: “On the face of it, it looks a sensible product range with scaled up-risk. There is a level of safeguarding on some, but it is worth noting that it isn’t guaranteed.

“Zopa are pretty transparent about everything on their website, but I would like more detail on the credit quality of the underlying borrowers for each. Also, the 1 per cent access charge is quite high.”