Today, we offer a technical tip.
One of our A-rated loan offerings is closing tomorrow. GH3 is a financial services company, seeking over £100,000. The offer is a “classic” – in that it is an auction, where registered lenders make offers of credit at different rates. At the time of writing, the offer is just under 90 per cent funded, and the gross indicative yield (the aggregated average of the credit offers before Money&Co. takes its 1 per cent fee) is 10.5 per cent.
We can’t say with absolute certainty that the “gaming” bids (the very high ones) will get knocked out. But previous experience shows there will be a flurry of activity as the auction closes, and competition means that lower bids are made, and they drive out the expensive offers. As we say above, do watch the process carefully.
IFISA & P2P
The ISA allowance for 2017/18 is increased from last tax year to £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. This return has been typical of our recent stream of A+ rated property-backed loans.
P2P & Risk
If you haven’t made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment.