Today it was announced that the Lending Works Innovative Finance ISA (IF ISA) has been launched onto the market. In an email sent to the peer-to-peer lending platform’s (P2P) customer-base, the ‘Lending Works ISA’ was finally unveiled by CEO, Nick Harding. It was clear this unveiling has been a long-awaited milestone, having undergone “immense scrutiny” in order to become fully authorised by the FCA and ISA plan manager approved by the HMRC.
Lending Works provides unsecured loans to UK consumers, returning 4% per annum (p.a) on its 3 Years product and 4.7% p.a on its 5 Years product.
*Statistics correct at time of publication. Actual returns may vary.
Lending Works is the fourth P2P provider to launch an Innovative Finance ISA onto the market, following Crowdstacker, Crow2Fund, and recent IFISA entrant LandlordInvest. The new Lending Works IF ISA is expected to generate significant interest from the P2P provider’s existing investor-base; a cap has been set on fixed tranches:
“We will only be accepting ISA capital in fixed tranches, with a collective cap of £1 million at a time. Once this cap is reached, we will temporarily no longer take in any further ISA monies until further notice.”
This cap has been imposed to ensure the matching of investor capital (ISA subscriptions) to borrowers is quick and balanced, so there isn’t an oversubscription of investor capital.
It is expected that this cap will be met within a week. In the announcement email, Lending Works’ CEO encouraged existing customers to take advantage now strongly suggesting ‘that, to avoid any disappointment you should aim to set up your new ISA now’.
In addition to this, customers were warned that potential rate drops may occur in the ensuing weeks due to high demand for the Lending Works ISA, but were reassured that the P2P platform will work to keep these drops to a minimum.