Latest A-Rated 8% Yield Loan Snapped Up - Plus P2P Primer
We're delighted to announce the swift closure of our most recent loan offer, an 8 per cent fixed-rate deal that filled yesterday. Another property-backed, 8 per cent fixed-rate loan remains on site – currently 72 per cent filled - with more loans in the pipeline.
Here' a reminder of some of the basics of peer-to-peer or P2P lending.P2P borrowing allows a person to lend or borrow directly from another person. A number of factors should be considered when researching P2P which is why Money&Co. has developed a series of guides to help you along the way. Whether you want to find out more about borrowing, the speed of your loan decision or the average yield on a peer-to-peer loan, you can find out by clicking on one of the articles below.More detail is available on site. Click here.Our lenders have achieved average returns of over 8 per cent on the more than £12 million facilitated by Money&Co. in the past four years. All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (ISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income.
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.