Back to Zopa Blog

Changes to headline lending rates at Zopa

To better reflect the marketplace we operate in, and the current economic landscape, we are making some changes to our headline lending rates at Zopa.

As of September 8th, 2016 all lender rates will decrease by 0.2%:

  • Access will reduce to 3.3% from 3.5%
  • Classic will drop to 4.1% from 4.3%
  • Plus will drop to 6.5% from 6.7%


Any money in the queue from September 8th will be lent out at these new rates, so you have time to manage your lending settings if you wish.

Low interest rate environment

As you will be aware, the Bank of England recently cut interest rates to a record low of 0.25%. While we aren’t as closely tied to the interest rate as high street banks, it has affected us in a couple of ways:

  • Headline rates for borrowers across the board are at a record low. We have seen 0.1-0.3% reduction in headline rates from other loan providers across key loan categories since the interest rate cut. It’s important that we stay competitive while maintaining our high standard of borrower.
  • Banks have already reduced their rates dramatically: in many cases by more than 0.25%. This lack of competitiveness for investors from the banks has led to a surge in new lenders at Zopa; meaning slower lending speeds and queues of, on average, 10 days in Classic. This is something we closely monitor and manage. As we are a marketplace it’s essential that we maintain the balance between borrowing and lending.


If you have any questions or concerns, please get in touch.

As with all marketplace lenders, when you lend your money your capital is at risk and is not protected by FSCS. Our risk statement has all the details.

Andrew Lawson is Chief Product Officer at Zopa.