PROPLEND has opened up its Innovative Finance ISA (IFISA) to new users.
The property peer-to-peer platform launched its IFISA for existing investors in May and is now ready to accept new lenders, offering tax-free returns of between five and 12 per cent.
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 loan-to-value (LTV), tranche B is 51 to 65 per cent LTV and tranche C is 66 to 75 per cent LTV.
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The Proplend IFISA accepts transfers and is also flexible, enabling investors to withdraw funds and return some or all the amount taken during the same tax year.
“Savvy investors have been saving to ISAs for years, albeit having to accept that if they take funds out after they’ve invested, they’ve used up that allowance, it doesn’t have to be that way anymore,” Brian Bartaby, chief executive of Proplend, said.
“At a maximum of 50 per cent loan to securing property value, we believe Proplend Tranche A loan investments are among the lowest risk on the market.
“In the absence of FSCS guarantees, we understand that many P2P investors value the steps we’ve taken to minimise lending risk for all loans listed on our platform.
“We’re proud of our record of no defaults and no arrears, which includes our higher risk Tranche C investments where investors with more of a risk appetite can achieve average fixed income returns in the region of 11 per cent.”
Bartaby said there was a “healthy loan pipeline” of opportunities that will be added to the platform during August.
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