We are pleased to announce the launch of the latest loan from WeBuyAnyHome.com Secured against property, the loan is rated A+ by our credit committee, yields 8 per cent, and is for £150,000 over three years.
Below we offer an extended excerpt from the borrower’s representations seeking credit (which we have examined using our best efforts, but do not warrant to be true). The borrower’s payment history on previous loans has been exemplary.
WeBuyAnyHome.com is the leading home buying company and one of the only genuine cash home buying companies in the UK. The company is owned and managed by property professionals with over 300 years’ combined experience in the residential property sector. WBAH is fully regulated by the Property Ombudsman, and a founding member of the National Association of Property Buyers. It is an award-winning business, ranking in the top 3 for YouGov’s “Top Brand Buzz 2019 Awards”.
Purpose of loan
The business continues to grow its revenue and is looking for support to help increase its stock of houses. Business Strategy WBAH assists home owners who are looking to achieve a quick sale on their property and typically offers 80% of market value. Importantly, it also offers to take on all ancillary costs associated with the sale. For houses with a £100,000 value, the amount of net cash received by sellers under a traditional sale process after all the ancillary fees including legal, survey and agent fees is expected to equate to close to £80,000. The average market value per unit for WBAH’s stock is £100,000. Once it has bought a house, it is remarketed at 95% of the market value and no work is done on any of the properties. WBAH has a strong expertise in valuing houses, which has been gained over the period that the company has been operating. The business is able to issue offers on properties on the same day of enquiry and exchange in as little as 48 hours. Given the volume of properties listed for sale by the company, WBAH is able to negotiate very low agent fees and thus maximise gross margin. WBAH’s average stock turn is 90 days.
Historical Performance And IFISA Process Guide
That figure is the result of over £23 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.