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.
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:
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.
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.