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What you need to know about lending without Safeguard 

As of 30 November 2020, the Safeguard Fund was wound down with the remaining balance paid to investors. Investors affected have received email communications about the payment and how this impacts them.

On 1st December, we’re retiring Zopa Access and Zopa Classic – that’s just over a month away. This means that if you have money in either of these products you need to decide whether to move your repayments into one of our non-Safeguarded products, Zopa Core or Zopa Plus.  You can also stop your re-lending at any time, but of course we hope you choose to carry on!

To help you make a decision about your repayments, here’s more on what you can expect from lending without Safeguard.

A long history of lending without Safeguard

Lending without Safeguard isn’t anything new for Zopa. Safeguard was only introduced in 2013.  All our institutional investors lend without Safeguard, and Plus has been our most popular product for new money since we launched it last year.  In fact, of the £2.7bn we’ve lent to date, only £700m has been with Safeguard coverage.

What to expect when you lend in a non-Safeguarded product

In many ways, Core and Classic are pretty similar – the same sort of loans in the same risk markets, with the same expected default rate and the same 1% loan sale fee – but, as it’s without Safeguard, Core operates slightly differently and offers higher expected returns after losses.

In Classic:

In Core:

Lending without Safeguard also means that the way you receive your returns may be a little different. The returns you see coming into your account each month may be more changeable in the short term, though, on average and over time, there is a higher expected rate of return. This timeline shows what you might expect from Core and Classic if you invested £1000 today, and continued to re-lend your repayments in the same product:

Illustrative only.

Zopa Plus follows the same principles, but the investment includes some higher risk loans to offer higher expected returns than Core.

If you’re not ready to decide, then your Access or Classic repayments will collect in your holding account as borrowers repay. You can then open Core or Plus when you’re ready but remember: money in your holding account doesn’t earn interest.

Our Customer Services team is here to answer any questions you have about our products and choosing to switch. You can contact them on or  020 7291 8331.

Remember when you invest your money your capital is at risk and isn’t protected by the Financial Services Compensation Scheme (FSCS).

How to move your repayments into Core or Plus

We’ve tried to make switching your repayments as quick and easy as possible. If you do this, you’ll see your money gradually wind down in Access and Classic, and build up in Core or Plus.

Remember, your existing Access and Classic loans will keep their Safeguard coverage. These changes only affect your new lending as your repayments buy more loans. Here’s how:

  1.  Log into your Zopa account
  2. Select “Add Core” from your dashboard
  3. Read through and make sure you understand the key features of Core before you confirm adding it to your investment products
  4. Once added, you can set your Access / Classic repayments to be redirected into Core by using the drop-down menus – remember to press save

That’s it – you’re now investing in Core, and your Access and Classic accounts will begin to wind down.

If you want to add Plus to your investments, follow the same steps as above, just select “Plus” instead of “Core” in step 2.