Zopa pauses new IFISA account openings

New investors will be unable to open a Zopa Innovative Finance ISA (IFISA) before the end of this tax year.

The peer-to-peer lending giant has been operating a waiting list for new investors since the end of last year and a spokesperson has confirmed to Peer2Peer Finance News that it won’t reopen for ISA season.

This means a new investor won’t be able to able to open or transfer an ISA to the P2P lender.

Existing Zopa investors who signed up before the launch of the waiting list at the end of 2020 will still be able to use their IFISA and general accounts.

Zopa is still lending but the number of new users has been restricted as there isn’t as much demand for personal loans currently so it wants to focus on supporting existing investors.

“Our ISA product has been very successful, almost 40 per cent of the retail money invested in the platform coming through it,” Zopa said in a statement to Peer2Peer Finance News.

“However, this year we will not be offering the option to set up new ISA accounts.

“Because of our strong performance through last year and recently diversified funding sources, we currently have high levels of liquidity in our platform and while this is positive for us, we want to ensure that we prioritise our existing investors and their relending to continue to provide a good investment experience for them.”

The temporary move means some of the major P2P lenders are now absent from ISA season.

Funding Circle paused all retail lending when it was accredited for the coronavirus business interruption loans scheme last year, so is not currently offering an IFISA.

RateSetter is also closed to new investors, including in its IFISA following its acquisition by Metro Bank.

IFISAs are still available from well-known platforms such as Assetz Capital and Abundance.