Peer-to-peer (P2P) giant Zopa has increased its targeted returns for the first time since 2015, although the platform remains closed to new investors.
The targeted annual return for its basic Zopa Core product has increased from 3.7% to 4% while the higher risk Zopa Plus product now has a targeted return of 4.6%, up from 4.5%.
Zopa says this is the first time it has increased targeted returns for investors since 2015, and this is because it can now charge more to borrowers who take out a loan using its platform.
While Zopa – including its Innovative Finance Isa (IF Isa) - remains closed to new investors, there are signs that the provider may be slowly opening up its platform. Existing customers can now register to transfer their Isas from other providers across to Zopa.
The platform says investors can register their interest on the Zopa website and will be allowed to transfer Cash Isas and Stocks and Shares Isas, plus any existing IF Isas with other providers, across to Zopa.
The platform also came in for criticism fom users in 2017 due to loan sale issues. To prevent the system slowdown seen last year, transfers will only be accepted in waves in order to control the levels of new cash flowing onto the platform.
Andrew Lawson, chief product officer at Zopa, says: “We’re delighted to offer investors a return of up to 4.6% for accepting the risk of peer-to-peer lending.
“Today’s increase in our headline rates reflects what our investors have been seeing for some time – higher rates of return across our four investment products.”