Bringing you live news and features since 2006 

Relendex launches IFISA wrapper for P2P secured property loans

RELATED TOPICS​

Relendex has launched its Innovative Finance ISA (IFISA) tax free wrapper for peer-to-peer (P2P) secured property loans.

 
The UK Government introduced the IFISA in April 2016 to sit alongside existing Cash, Stocks & Shares and Lifetime ISA products.
 
The Relendex ISA will work in a similar way to its regular accounts: lenders will decide which loans to invest in and can build their own diversified portfolio of loans. Through the IFISA, lenders can benefit tax-free returns on loans secured against UK property.
 
Michael Lynn, founder and CEO of Relendex, says: “Many people have built up a significant nest-egg in their tax-free ISA, but in the low-interest environment Cash ISAs are only earning around 0.5 per cent pa and Stocks & Share ISAs are potentially quite volatile and therefore investors’ capital is at risk. A secured lending P2P ISA is the best of both worlds. The yield is good at between 6 and 10 per cent pa, tax-free and there is considerable capital protection in the form of security over independently-valued UK property assets. Of course property values can fall, but since our average Loan-to-Value is around 60 per cent, the property concerned would need to fall 40 per cent on average before any loss would result.
 
“So if ISA investors are thinking of using this year’s Annual ISA Allowance or transferring existing ISA funds to a Relendex IFISA Account, they can build a diversified portfolio of good quality loans and achieve a good yield. They can also reinvest the gross interest, to achieve compound growth and build their capital.”
 
The Relendex ISA is a non-flexible ISA. This means that all new subscriptions made during a tax year will count towards the subscription limit for such tax year and cannot be replaced.
 
Lynn explains: “Our lenders see us as a longer term investment, although we do provide a secondary market if they decide to sell on early. A non-flexible ISA recognises this longer-term demand and allows us to offer the ISA without any fees.
 
“Also, ISA holders are responsible for adhering to the HMRC annual ISA Allowance, so we track their subscriptions so they don’t inadvertently exceed their annual allowance with us.” 

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by