BUY-TO-LET lender LandlordInvest has become the latest peer-to-peer finance platform to gain full authorisation from the Financial Conduct Authority (FCA), following a 24-month application process.
The platform has now applied to HMRC for approval to offer the Innovative Finance ISA (IFISA) and expects to be able to sell the tax-free product within the next few weeks. At present, just 17 companies are able to offer IFISAs, most of which are small, fledgling firms. Seven out of the eight members of the Peer-to-Peer Finance Association are still waiting, with Lending Works the only major lender to have already gained approval.
“We have after a long and rigorous process finally been authorised by the FCA,” said Filip Karadaghi, LandlordInvest’s chief executive. “We are delighted to have reached this important milestone, ahead of many larger peer-to-peer lending platforms, that are still operating under an interim permission. Full FCA authorisation means that we have proved to the regulator that we are able to meet its high threshold standards and have the appropriate regulatory and operational infrastructure in place.”
LandlordInvest expects to offer investors returns ranging between five and 10 per cent per year, through the tax-free IFISA product.
London-based LandlordInvest offers a range of buy-to-let and bridging loans with a minimum investment of £100. It aims to offer lenders risk-adjusted returns of between five and ten per cent per annum.
Its borrowers include professional landlords searching for loans of between £30,000 and £750,000 for up to five years. Bridging loans are available for a maximum term of 18 months.