COMMERCIAL property peer-to-peer lender Proplend is the latest platform to receive full authorisation from the Financial Conduct Authority (FCA).
Brian Bartaby, chief executive of Proplend, said the firm would now apply for ISA manager status from HMRC but said it was unlikely to have an Innovative Finance ISA (IFISA) ready this tax year.
Launched in 2015, Proplend lets lenders invest in three risk tranches based on different loans-to-value (LTV) with the security of the first legal charge on the commercial property.
The lowest risk is tranche A at zero to 50 per cent LTV, tranche B is 51 to 65 per cent LTV and tranche C is 66 to 75 per cent LTV.
Once ISA manager status is received, Bartaby told Peer-to-Peer Finance News, the platform is considering doing a low risk tranche A IFISA to cater for the “more passive investor.”
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Returns on the platform currently range from five to 12 per cent and borrowers can access loans of between £250,000 to £5,000,000 for up to five years on an interest-only basis. The platform has funded £11.5m of loans so far and has recorded zero defaults.
“After a comprehensive approval process, we are delighted to have reached this significant milestone,” said Bartaby.
“The granting of full authorisation demonstrates to current and future investors that Proplend’s regulatory and operational infrastructure has met with the highest standards demanded by the FCA.”