The first ever peer-to-peer lender has opened its doors to investors seeking tax-wrapped income from the platform.
Investors can now make use of Zopa’s P2P lending in the Innovative Finance ISA, allowing tax free interest on up to £20,000.
Zopa was the first of the ‘big three’ P2P lenders – other two being Funding Circle and Ratesetter – to be allowed to launch the IFISA after being fully authorised the regulator, the Financial Conduct Authority.
The firm, which was the first ever P2P lender in the world, says there has "incredible interest" from investors for its IFISA.
“To help manage demand, we’re currently only offering our IFISA to existing customers. However, we may still see more money coming in than we can lend out straight away which could cause your lending speeds to slow down. We will monitor this closely, and keep investors informed,” said Andrew Lawson, chief product officer at Zopa.
The firm will also launch Zopa Core, its latest peer-to-peer investment. It targets a return of 3.9 per cent and will, by December, replace Access and Classic products, without Safeguard coverage.
From July, existing investors can sell their current loans to move the proceeds into a Zopa IFISA.