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What does Zopa Classic mean for me?

Since the announcement of our new products two weeks ago, the most common question has been “What happens to my current rates?”

We aim to answer this as clearly as possible below.

  • Firstly, and most importantly, nothing will change for your existing loan book. You will still continue to own your existing loans at the existing rates.
  • Secondly, it is only the repayments that you receive from borrowers each month which will be re-lent at the new Zopa Classic rate of 4.5%.


This means that if you are a lender who has currently invested their money in 4 and 5 year loan terms at an average expected rate of 5.0%, then it will take a while for your loan book to move towards the new Zopa Classic rate.

Here’s an example:

Lender A has £12,000 lent out in our long market at 5.0%. Each month they receive about £500 in repayments (made up of capital and interest, and calculated based on existing customer data that reflects early repayments from borrowers).

When we launch our new products in mid-March this £500 will be lent out at an average projected rate of 4.5% in our Zopa Classic product, assuming they have re-lending turned on.

After one year, Lender A will have received about £6,000 of repayments, all of which will have been re-invested at the new Zopa Classic rate of on average 4.5%. Lender A’s new lent out rate will be approximately 4.75% (£6,000 at 4.5% and £6,000 at 5.0%).

Projections are not an indicator of future performance, and are intended as an aid to decision-making, not as a guarantee.

How do I earn more with Zopa?

If you would rather invest your money in Zopa Plus at higher projected return in exchange for higher associated risk and no Safeguard cover, then you can. Simply update your funding preference to Zopa Plus and either fund more money into your Zopa account, or turn re-lending off and allow your repayments to accumulate. Once you have £1,000 to invest your money will be lent out at an average projected return of 6.5%.

With peer-to-peer lending your capital is at risk, our risk statement has the details. Zopa isn’t covered by the Financial Services Compensation Scheme (FSCS).