EasyMoney launches second IFISA with higher returns

EASYMONEY, part of Sir Stelios Haji-Ioannou’s easy family of brands, has launched a second Innovative Finance ISA (IFISA) that offers higher returns than its first tax wrapper.

The recently-launched peer-to-peer lending platform said on Saturday that its ‘balanced’ IFISA allows individuals to invest in a broader range of property-backed loans, with a target interest rate of 7.28 per cent. Loans written for the ‘balanced’ IFISA are limited to 75% loan-to-value (LTV).

Its original ‘conservative’ IFISA, launched in February, offers investors target returns of 4.03 per cent, with loans limited to 65 per cent LTV.

The other key difference is the minimum investment required for both products. Investors need to put at least £20,000 into the ‘balanced’ IFISA, compared to £1,000 for the ‘conservative’ IFISA.

Read more: EasyMoney: Decline in young people using ISAs is a ‘real concern’

“Our ‘conservative’ IFISA is aimed at investors who are looking for something more than the paltry rates offered by cash ISAs, while the ‘balanced’ IFISA is for investors who are looking for something simpler than stocks and shares ISAs,” said chief executive Andrew de Candole.

“Just as EasyJet revolutionised European air travel 23 years ago, EasyMoney is looking to shake up the ISA market. It aims to make quality financial products more accessible to everyone.”

EasyMoney acquired the business of specialist short-term property lender Tower Bridging and makes loans to property professionals secured by a first legal charge over UK property.

Read more: Five things you need to know about IFISAs