The much anticipated Landbay ISA was unveiled to the peer-to-peer lending platform’s customer-base yesterday. The latest in a recent flurry of Innovative Finance ISAs (IF ISA) to enter the market, the Landbay IF ISA is the second property-backed IF ISA live on the UK market, following LandlordInvest’s IF ISA which was launched in January.
As a member of the P2PFA (peer-to-peer finance association), Landbay is considered one of the more established P2P platforms to be approved by the regulator, allowing it to offer the Innovative Finance ISA. The P2P platform became fully FCA authorised in December and was HMRC ISA plan manager approved in January. Lending Works was another member of the P2PFA who launched its IF ISA last week and had tremendous success filling its investment cap before reopening to new investors last Friday.
Both new and existing investors on the Landbay platform are now able to invest up to the full ISA annual allowance of £15,240 in this tax year, rising to £20,000 at the start of the new tax year in April. The product launches with a minimum investment of £5,000, at a rate of 3.75%.
Since completing its first loan in 2014, Landbay has lent over £43m to professional residential landlords in the UK, with 0% facing repayment difficulties. Landbay was also a founding platform of the Zoopla Invest service which launched early in 2016.
John Goodall, Landbay CEO said:
When the Chancellor first announced the IFISA would launch in April 2016, it was hailed as a victory for savers and investors alike. It’s taken a little longer than expected for products to pass regulatory scrutiny and reach the market, but we’re proud to be one of the first platforms to be offer investors the benefits of the tax wrapper, and in time for the end of the tax year. At a time when investors are facing record low interest rates, and the prospect of rising inflation, our IFISA gives people the opportunity to earn a 3.75% return in a tax efficient manner, by lending to one of the UK’s best performing asset classes: buy to let.
This is a fantastic opportunity for investors both this tax year and next, when the ISA allowance rises to £20,000.