New A-Rated Loan, 8% Fixed Yield, Property-Backed, Comes To Market
We have a new loan offering available on site, with, as promised, more in the pipeline.The current offer is detailed below:
Project Seascape, tranche 6, is a £100,000 offering. It is already 7 per cent funded, risk-rated A, and secured against German property. It offers a fixed-interest yield of 8 per cent over a five-year term.
A Process Guide To Innovative Finance ISA Investment
All loans on our site can be held tax-free, via an Innovative Finance ISA (IFISA). The current offering would yield almost exactly £1,400 per annum tax-free, net of our 1 per cent charge, for a £20,000 maximum IFISA investment.So here's our guide to the process of getting hold of that tax break:
Step 1: Register as a lender. Go to the login page, and go through the process that the law requires us to effect. This means we have to do basic checks on you to comply with money-laundering and other security requirements.
Step 2: Put money into your account. This is best done by electronic transfer. We can also process paper cheques drawn in favour of Denmark Square Limited, the parent company of Money&Co.
Step 3: Buy loans in the loan market. Once you've put cash in your account it will sit there - and it won't earn interest until you've bought a piece of a loan. It's this final step that requires lenders and IFISA investors to be pro-active. Just choose some loans - all loans on the Money&Co. site can be held in an IFISA - and your money will start earning tax-free interest.
The ISA allowance for 2018/19 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.