Inflation-Beating P2P Heads For Mainstream - Plus Loan Latest
We're heading for the mainstream. Here's one reason why: Our lenders, in the four years we have been facilitating peer-to-peer (P2P) loans, have achieved returns of over 8 per cent. Inflation in the UK is running near the 3 per cent mark. Set that against the fact that cash deposits that qualify for Individual Savings Accounts offer an average return of 1.03 per cent, according to research carried out by Money&Co., and it's possible to see why more and more savers and investors are turning to peer-to-peer (P2P) loans. Money&Co.'s P2P loans bring individuals looking for excellent returns on capital together with carefully vetted small companies seeking funds for growth.
We currently have two loan offerings available on site, with more in the pipeline. The two current offers are detailed below:Webuyanyhome is 85 per cent funded, risk-rated A+ and UK property-backed. It has a fixed-interest yield over three years of 8 per cent.Project Seascape is 22 per cent funded, risk-rated A, and secured against German property. It offers a fixed-interest yield of 9 per cent over a five-year term.
Don't miss the Future of Fintech breakfast in London next month. Money&Co. CEO, Nicola Horlick, will headline the event, which will be hosted by Business Cloud editor, Chris Maguire.
A Process Guide To Innovative Finance ISA Investment
All loans on our site can be held, tax-free, via an Innovative Finance ISA (IFISA).So here's our guide to the process of getting hold of that tax break:
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.