Money&Co. launches Innovative Finance ISA

By Moriah Costa on 9th March 2017

P2P/Marketplace Lending

The peer-to-peer lender is the latest entrant to the IFISA, as the largest lenders still wait for approval.

Money&Co. launches Innovative Finance ISA

Money&Co. is the latest peer-to-peer lender to offer an Innovative Finance Individual Savings Account, the company announced today.

The firm is also planning to offer a range of fixed term loans that are more suitable for ISAs.

Nicola Horlick, CEO of Money&Co said they are planning to offer a three-year fixed term loan as early as next week, which is secured by UK residential properties with a target net yield of 7 per cent after fees.

“We all know that people in Britain love property,” she said. “I think property is going to be a very major part of all this.”

The IFISA was launched by former Chancellor George Osborne in April 2016 and allows individuals to include income from P2P platforms as part of the current £15,240 allowance. The tax-free investment amount will rise to £20,000 in April.

So far, only a dozen or so platforms have been approved to offer the IFISA before the April 5 tax-year deadline. The three largest alternative lenders,  Zopa, Funding Circle and Ratesetter have not yet gotten regulator approval. The Financial Conduct Authority scrutinized some lenders in the industry in February for lending to each other.

Some platforms have reported an increased interest in the IFISA, with as much as a third of their total investments coming from transfers of Cash and Stock ISAs to the new IFISAs.

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