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Peer2Peer Finance News | November 18, 2017

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Zopa sees 35pc rise in home improvement loan originations

Zopa sees 35pc rise in home improvement loan originations
Suzie Neuwirth

ZOPA said it has seen a 35 per cent year-on-year increase in home improvement loan originations in the first half of 2017, equating to over £92m in funding.

The world’s oldest peer-to-peer lender said on Wednesday that it has now helped over 70,000 people to renovate their home and increase the value of their property.

The consumer finance provider also unveiled its latest home improvement index, which found that the average UK home improvement would increase the value of a property by nine per cent or nearly £24,000, based on homeowner’s estimates.

The average return on investment was 50 per cent, based on the total amount spent by homeowners. The average profit across all improvement projects was £8,000.

Zopa surveyed 1,550 UK homeowners who had recently taken out a home improvement loan.

Read more: Zopa completes fundraising ahead of bank transition

“Home improvements can be a cost-effective way for homeowners to add value to a property for the long-term,” said Zopa’s chief executive Jaidev Janardana (pictured).

“Taking out a personal loan instead of remortgaging or using an expensive credit card, could be a smart choice for homeowners who want to spread the cost of a home improvement project over a number of years through an affordable monthly repayment, and who prefer a quick and simple online application process.”

Zopa gained full Financial Conduct Authority authorisation in May and unveiled its Innovative Finance ISA last month, although it is initially available solely to existing investors.

The firm, which revealed last year that it is applying for a banking licence, also announced last month that it is opening a new hub in Barcelona, Spain, to help build the technology for the launch of its digital bank.

Read more: MarketInvoice names Zopa’s Giles Andrews as chairman