Relendex launches Innovative Finance Isa

The Relendex Isa is a non-flexible Isa and works in a similar way to its regular lending product with all loans available on the platform being backed by security over the property.

Investors also have full control over which loans they invest their funds into.

“Many people have built up a significant nest egg in their tax-free Isa, but, in the low-interest environment, cash Isas are only earning around 0.5% pa and stocks and shares Isas are potentially quite volatile and therefore investors’ capital is at risk,” said Michael Lynn, CEO of Relendex (pictured above).

“A secured lending P2P Isa is the best of both worlds.

“The yield is good at between 6-10% pa, tax-free and there is considerable capital protection in the form of security over independently-valued UK property assets.

“Of course property values can fall, but since our average loan-to-value is around 60%, the property concerned would need to fall 40% on average before any loss would result.”

The government introduced the IFIsa in April 2016, which allows savers to use their annual Isa investment allowance to lend funds through the P2P lending market.

Currently for the 2017/18 tax year, there is an annual Isa investment limit of £20,000.

 “…If Isa investors are thinking of using this year’s annual Isa allowance or transferring existing Isa funds to a Relendex IFIsa account, they can build a diversified portfolio of good quality loans and achieve a good yield,” Michael added.

“They can also reinvest the gross interest, to achieve compound growth and build their capital.”