PEER-TO-PEER property lender Octopus Choice has opened its Innovative Finance ISA (IFISA) up for transfers.
New and existing clients can transfer some or all of their ISA investments into the Octopus Choice ISA, which targets a four per cent return by investing in loans secured against bricks and mortar.
There are no charges for moving money in and out of the Octopus Choice ISA, and no minimum or maximum transfer limits, though there may be exit charges administered by other ISA providers.
Octopus Choice launched its IFISA last August and said it has seen strong demand from financial advisers and their clients for the product.
Read more: Octopus Choice gains full FCA authorisation
“Allowing transfers into the Octopus Choice ISA presents a new opportunity for investors to access the potential for inflation-beating returns, without further exposing their ISA to stock market volatility that so many are wary of,” Sam Handfield-Jones, head of Octopus Choice, said.
“As part of a diversified portfolio, it aims to operate in this sweet spot by targeting an attractive rate of regular interest, by investing in asset-backed loans.”
The P2P lender, which was spun out of Octopus Investments, was launched in consultation with financial advisers in April 2016. Every loan is secured against property, with an average loan-to-valuesof 60 per cent. Octopus Choice also invests five per cent in each loan at first loss.
Read more: Octopus Choice to launch IFA portal