Lender hits £400m milestone

A lender has announced that is has now lent over £400 million to UK borrowers since it launched in 2005.

The record lending milestone at Zopa, the world’s first peer-to-peer lender, comes off the back of a £5.8 million lending week.

Zopa is showing significant levels of growth by lending a further £100 million in less than six months, having passed the £300 million lent mark in the second quarter of 2013.

There has been a 172 per cent increase in lenders adding new funds to their accounts compared to this time last year.

The figures highlight how consumers are fully embracing peer-to-peer lending as an alternative way to save and borrow which bypasses the banks to get a better deal.

Giles Andrews, CEO of Zopa said: "Lending £400 million is a fantastic achievement and a great sign of the appetite that UK savers and borrowers have to get a better deal through peer-to-peer lending. Zopa is growing faster than ever, lending at a rate of three times compared to the same period last year. As the world’s first peer-to-peer lender we are very proud to reach this industry milestone, made only possible by the support of our savers and borrowers.

“We expect to lend £200 million this year alone, reaching half a billion pounds ahead of planned FCA regulation due in April 2014.”

The UK's peer-to-peer lending industry is growing at a rapid rate with it set to lend £1 billion per annum by 2016. Zopa expects to lend £200 million this year alone, with projections to reach £500 million lent in total ahead of planned regulation due in April 2014. It has a year-on-year growth rate of around 200 per cent.

Zopa is the founding member of the P2PFA and has led the call for regulation in the sector and believes that it will help take peer-to-peer lending even more mainstream and encourage further trust from consumers.

Zopa currently has over 43,000 active savers lending between £10 and over £1 million.