What’s an early repayment charge?

This is a charge for paying off a loan before the end of its term. They’re common across the lending industry and we introduced them at Zopa in September 2022.

Will I have to pay an early repayment charge?

If you took out your loan after 7th September 2022, you'll be subject to an early repayment charge if you pay off your loan before the end of its term. However, if you're nearing the end of your loan term, we will waive your charge

If you took out your Zopa loan on or before 7th September 2022, there is no charge for settling early.

How is the early repayment charge calculated?

Early repayment charges are calculated based on your loan term. In line with UK financial regulations (to be exact, *The Consumer Credit Early Settlement Regulations 2004*), if your loan term is 12 months or under, the early repayment charge will be equal to the amount of interest that would've been applied to your loan over a period of 28 days. If it's over 12 months, it'll be one month and 28 days' worth of interest.

When is the early repayment charge applied?

If you’re subject to an early repayment charge, it’ll be automatically factored in when you request a settlement quote. You’ll then have 28 days to pay. If you don’t pay in that timeframe, your quote will expire.