Last week has seen two leading peer-to-peer lending platforms receive HMRC ISA plan manager approval, paving the way for two more Innovative Finance ISAs entering the market in 2017.
On Monday, the buy-to-let mortgage specialist Landbay announced that it had passed the 2nd step in regulatory proceedings allowing the P2P lender to offer IFISAs to its investors. Landbay was granted full FCA authorisation in December, making it a member of a niche, but growing, group of peer-to-peer platforms with full permissions – a necessity if a platform wishes to offer the IFISA. The P2P platform has facilitated over £42million worth of investments, in over 421 loans to UK property borrowers, since its inception.
Completing its first loan in 2014, Landbay has successfully facilitated £43million worth of investment across 244 loans, with a 0% default rate to-date. With the Landbay Innovative Finance ISA expected before the close of the 2016-17 tax year, the P2P platform can surely expect an influx of investors into its 3.43% and 3.75% p.a products.
Octopus Choice, a recent entrant into the UK P2P market (early 2016 launch), announced that it’s also been approved as an ISA manager by the Board of HM Revenue and Customs (HMRC).The product of Octopus Investments, the Choice platform has made waves in the P2P lending industry since inception, facilitating more than £45m worth of loans to asset-backed property borrowers, inside one year.
With an increasingly competitive landscape as more peer-to-peer lenders become fully authorised and approved to offer IFISAs, Octopus Choice values getting their product right rather than racing to the finish line. The platform will launch its Innovative Finance ISA later in 2017, allowing new subscribers initially before considering ISA transfers.
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Disclaimer: Past performance is not a reliable indicator of future performance. When investing through peer to peer lending platforms, your capital and interest is at risk. Your investment is not covered by the Financial Services Compensation Scheme’.
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