And after some delay - it's here!
The next tranche of the popular Project Seascape has arrived on site. This is a special-purpose vehicle, which will be used to fund property development. The management team has extensive experience in the property sector and a strong track record. The team has worked together since 2008, during which time they have completed 80 developments.
The loan is for 5 years and the interest rate is fixed at 9 per cent. Lenders will have a first charge over the underlying property. Please note that interest payments will be made twice annually.
If you have an ISA, this loan is eligible for inclusion in your ISA portfolio and you will receive the interest completely tax-free. If you do not have a Money&Co. ISA and would like to open an account, please go to the ISA tab on the website. You will need your National Insurance number in order to complete the application form.
The management of the borrowing company represent it as a substantial property development business which has been trading for nine years. They go on to say: "We focus on purchasing and developing listed properties for residential use in leading cities in Germany including Berlin, Frankfurt, Hannover and Leipzig. The shortage of residential property in Germany means that there is an opportunity to increase our level of development activity and that is why we are seeking to borrow through Money&Co.
A Process Guide To Innovative Finance ISA Investment
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 2018/19 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.