IFISA funds boost Landbay lending as platform hits third anniversary
INNOVATIVE Finance ISA (IFISA) investors are placing double the amount in the tax-free wrapper than in regular peer-to-peer accounts, Landbay has revealed.
Julian Cork, chief operating officer of Landbay, said the average IFISA account size on the property lending platform was £14,000, double that of the regular accounts.
The Landbay IFISA was launched in February and offers a return of 3.75 per cent.
“The IFISA account is great from a tax-free return perspective but also a lot of cash ISAs are not returning much,” Cork said.
“When you think that you can invest in stocks and shares ISAs where you get volatility or somewhere like Landbay where you have a fixed asset-backed return, the risks and rewards are compelling.”
He said around 60 per cent of lending on the platform is now through IFISAs.
It comes as Landbay marks three years of lending today, with £1.3m of loans placed so far this month, up from £1.2m in June.
Cork said the priorities in the coming years would be continuing to grow lending and diversifying funding sources from retail and institutional investors, such as through securitisation.