Mario Berti

Octopus Choice launches IFIsa

Octopus Choice has launched its Innovative Finance Isa (IFIsa) which will allow investors to target a variable rate of interest of around 4% per year, tax-free on investments within their annual ISA allowance.

Octopus Choice – the peer-to-peer lending product – provides capital for investment in real estate loans and is distributed by Octopus Investments.

The Octopus Choice Isa allows investors to choose an amount from as little as £10 which will then be invested by Octopus in carefully selected loans secured against property in the UK which are underwritten by Octopus Property, which has a default rate of less than 0.01%.

Octopus also invests 5% in each loan at first loss, meaning investors can get their initial investment back first and receive interest due to them before Octopus earns any, while investors are not charged any upfront fees to invest with Octopus Choice.

Sam Handfield-Jones, head of Octopus Choice, felt at a time of low interest rates and ever-present stock market instability, an alternative investment solution had never been more important to investors.

“We are thrilled that we can now help them include Octopus Choice within their Isa planning.

“Since we launched Octopus Choice in April 2016, it has become one of the UK’s fastest-growing P2P products, having already facilitated over £130m of lending across nearly 200 loans to date. 

“The Octopus Choice Isa offers investors exactly the same product, but within the Isa wrapper, and we expect today’s launch to bolster the impressive demand we have already witnessed for this product.”

Mario Berti, CEO of Octopus Property (pictured above), said it had seen robust demand from high-quality borrowers across all areas of the business.

“As part of our unique lifecycle lending proposition, we have launched a range of new products to help ensure that we offer competitively priced, flexible lending solutions to our borrowers. 

“In order to support the demand for our widened product range, we have continued to grow the Octopus Property team, thus helping to ensure that our coverage, market knowledge and underwriting capacity remains first class.  

“We believe that the fundamental shortage of housing in the UK will continue to support the UK real estate market over the long term and are confident that the Octopus Choice Isa provides an ever-widening investor group with access to this important asset class. 

“Our track record in the market and the first loss investment made in every loan by Octopus is clear evidence of this.”

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