New Property-Backed Three-Year P2P Loan Offers Fixed-Rate 8%

We’re pleased to announce the recent launch of our latest property-backed loan. North-East Property Investment has a fixed-rate yield of eight per cent over three years. It’s 3 per cent subscribed at the time of writing.

As ever, we’ve made our best efforts in due diligence and credit analysis before awarding this loan an A rating. However, we cannot warrant that the representations of the borrower are true – though clearly we believe them to be so. We offer an excerpt from those representations – available to registered lenders – below.

Please remember there is always an element of risk, and capital loaned is at risk. See risk warnings at the foot of this article, on our Home page and in FAQs on site.

North East Property Investments was founded by Max Armstrong. The company manages buy-to-let portfolios for individuals in the North East of England. The individuals invest their money and the company then sources properties on their behalf, refurbishes them and then lets them on long-term leases to local authorities (Sunderland, Gateshead, Hartlepool and Newcastle), Compass and G4S. In addition to individual investors, it also has a number of institutional investors. The Special Purpose Vehicle (SPV) will purchase three residential properties, refurbish them and then let them to corporate partners of NEPI.

  • Purpose of loan

The proceeds of the loan will be used to purchase the freehold interests of three residential properties in the North East of England

  • Customers

The SPV will rent the houses to the partners that it works with as detailed above

  • Suppliers

NEPI has an in-house team that renovates the purchased properties to a high standard. The volume of work that the team does means that they are able to negotiate attractive prices on materials and fittings. The CEO ensures that all work meets building regulations and is properly signed off if required.

8% Yield Loans – 39% And 91% Subscribed

The latest property-backed £250,000 loan from Seascape is now more than 91 per cent subscribed. This A-rated tranche yields 8 per cent gross, at a fixed rate for five years. The three-year loan described above is currently 39% filled. As is the case with earlier tranches of credit, we have used our best efforts to ensure the truth of the assertions made, but cannot warrant their absolute accuracy. Fuller detail is available to logged-in members.

A Process Guide To Innovative Finance ISA Investment

Money&Co. lenders have achieved an average return of more than 8 per cent gross (before we deduct our one per cent fee). That figure is the result of almost £15 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.

All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.

So here’s our guide to the process:

  • Step 1: Register as a lender. Go to the login page, and go through the process that the law requires us to effect. This means we have to do basic checks on you to comply with money-laundering and other security requirements.
  • Step 2: Put money into your account. This is best done by electronic transfer. We can also process paper cheques drawn in favour of Denmark Square Limited, the parent company of Money&Co.
  • Step 3: Buy loans in the loan market. Once you’ve put cash in your account it will sit there – and it won’t earn interest until you’ve bought a piece of a loan. It’s this final step that requires lenders and IFISA investors to be pro-active. Just choose some loans – all loans on the Money&Co. site can be held in an IFISA – and your money will start earning tax-free interest.

The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.

Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.

Risk: Security, Access, Yield

Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.


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Disclaimer: Money&Co.™ is the trading name of Denmark Square Limited, Company Number 08561817, registered in England & Wales, authorised and regulated by the Financial Conduct Authority (FCA). The company is identified on the Financial Services Register under Reference Number 727325. The registered office is 58 Glentham Road, Barnes, London, SW13 9JJ where the register of Directors may be inspected. Denmark Square Limited (ISA manager reference number Z1932) manages the Money&Co. Innovative Finance ISA.