IFISA

About the IFISA

An Innovative Finance ISA (IFISA) lets you use your tax free ISA allowance while investing in peer to peer (P2P) lending.

It works by lending your money to borrowers in return for a set amount of interest based on the length of time you are prepared to leave your money untouched.

You can pay in up to your ISA allowance, which is £20,000 in the 2018/19 tax year.

As an IFISA works like a loan there is a chance the borrowers could default on their repayments.

Most of the companies that offer IFISAs have a backup or reserve fund set up to protect your money against any borrowers who default on their repayments.

Your investment will typically be split between a large number of loans to companies that match the risk/reward profile you select in order to spread your risk.

P2P lending and the IFISA

 

There are an increasing number of Innovative Finance ISAs  available on the market, offering you the opportunity to lend your money to a mixture of individuals, businesses and infrastructure projects.

The IFISAs we list below vary greatly – some are based upon property loans, others loans to small businesses and SMEs; still more combine the two.

They also vary in terms of the minimum investment they will accept, and the period of your investment – typically the longer the term, the greater the reward.p2p ifisa

As with any investment it is important that you fully understand what you are investing in, what your exposure to risk is, and what costs you will incur.

Whilst some marketplace lenders operate a lifeboat fund to cover the cost of default, not all do; your investment will be diversified over a wide range of loans, but P2P lending is a relatively new phenomenon and it is not covered by the Financial Services Compensation Scheme.

P2P is still growing at a rapid rate with 200,000 retail investors targeting stable, attractive returns with £10 billion in cumulative lending.

P2P loans are shielded from stock market volatility, offer downside protection through security provisions and can deliver a diverse portfolio with an alternative investment which was previously only available to institutional investors.

There are now a number of platforms that sit above a range of lenders and lending sub-sectors, removing the need for investors to select individual loans.

P2P is a direct loan contract, known as a P2P agreement, between the lender and borrower; the role of a P2P platform is to facilitate this agreement by originating loans and matching borrowers to lenders; the IFISA wrapper ensures that your gains stay well away from the Treasury.

 

Introducing the Innovative Finance ISA (IFISA)

28th


Oct

Targeting a £1m pot with an Innovative Finance ISA (IFISA)

And a steady tax free income for life before you retire - writes Jake Wombwell-Povey

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19th


Oct

How the Innovative Finance ISA (IFISA) is helping solve investor challenges

The IFISA is moving far from its peer-to-peer roots and is now being used across the asset

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18th


Sep

P2P Aggregator Launches Equity Crowdfunding Campaign on Seedrs

Orca is fundraising to support ambitious growth and expansion plans

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22nd


Jul

Searching for Yield? You Need to Look Hard to Find it.

Angus Campbell looks at some possible sources of income

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10th


Mar

Exploring Possibilities: The Innovative Finance ISA in action

Although regulation restricted its launch, the IFISA has been around for a year; this is how it

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1st


Mar

Use it or Lose it: Pick the right ISA as the deadline approaches

DIY Investor’s at-a-glance guide to the now seven different ISA account types and what they may

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13th


Feb

How to use the Innovative Finance ISA (IFISA) to manage risk & return

Andrew Adcock of Crowd for Angels looks at tax-efficient investing in P2P loans

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1st


Feb

Direct lending – a new asset class for fixed income investors?

David Beacham explains Goji's term based diversified lending product

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1st


Jun

Will Brokers Give DIY Investors Access to Direct and Marketplace Lending?

Institutional investors have embraced peer-to-peer lending, as have 170,000 direct retail investors

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16th


Nov

Getting More out of Your ISAs

Crowdstacker Explains the Innovative Finance ISA

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2nd


Aug

Fixed Income for the Retail Investor?

Introducing Invoice Finance - Peer-to-peer or Crowdlending

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23rd


May

Eyes Wide Shut? – Muckler Urges Caution for P2P Investors Seeking Income

‘Investors face potential losses when the loans they have bought are down-valued’ - sound

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4th


Apr

Regulation Stymies Innovative Finance ISA Providers

With a planned launch date of 6th April many would-be IFISA providers await permission

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17th


Mar

Returns that Stand out From the Crowd

Crowdnetic's Adam Braggs explains the three flavours of crowdfunding - rewards, equity and debt.

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5th


Mar

What is Peer-to-Peer Lending?

DIY Investor's introduction to P2P for savers and investors

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4th


Mar

Innovative Finance ISA

DIY Investor's introduction to the tax efficient wrapper for peer-to-peer lending

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IssuerRateUnderlying assetMinimumSecondary marketTerm FlexibleTransfer in Transfer outFind out more
8-15%various£100 yes12-72 monthsyesfree £2500 minyes £100Visit page
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IFISA5-12%energy£5yes, free10-240 monthsyesyes, freeyes, freeVisit page
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5-6.2%SME£1000yes, manual12-36 monthsnoyesyesVisit page
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Muckle - IFISA compare6.3-10%SME£1000no 3-36 monthsyesyes, freeyes, £35Visit page
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muckle - compare IFISA4.1-12%various£1yes, free3-60 monthsyesyes, freeyes freeVisit page
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muckle - compare IFISA6.1%various£1000yes36 monthsno yesyesVisit page
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10/14%property£1000yes, 3%12/36 monthsyesyes, freeyes, £35Visit page
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compare IFISA6.4-9%SME£100no24/60 monthsno yes, freeyes, freeVisit page
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compare IFISA9%SME£100yes, free12/60 monthsyesyes, freeVisit page
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compare ifisa8%property£500no6-18 monthsyes, freeyes, freeVisit page
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compare IFISA5-7%SME£100yes, free12-36 monthsnoyes, freeyes, freeVisit page
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compare ifisa3.2-7%various£100yes, 25%1-24 monthsnoyes, freeyes, freeVisit page
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compare ifisa4.1-7.3%property£1000yes3-24 monthsnoyes, freeyes, £50Visit page
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compare ifisa5.5-6.5%property£20000yes>£2506-60 monthsnonoyes, £50Visit page
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compare ifisa4.8-7.2%SME£1000yes6-60 monthsyesyes, freeyes, freeVisit page
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ifisa9-14%property£25yes, free6-12 monthsnoyes, freeyes, freeVisit page
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5-7%various£5000no12 monthsno yes, freeyes, £35Visit page
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7-15%property£10000yes1-36 monthsyesyes, freeyes, £75Visit page
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compare ifisa3.9-5.3%property£100no12-60 monthsnoyes, freeyes, £35Visit page
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compare i3.5%property£5000yes, free24-60 monthsnoyes, freeyes, £50Visit page
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compare ifisa5-12%property£100yes, 0.25%6-60 monthsyesyes, freeyes, freeVisit page
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compare ifisa5-6%green energy£50yes24-36 monthsyesyes, freeyes, freeVisit page
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4.5-6%consumer£10yes, 0.6%36-60 monthsno yes, freeyes, freeVisit page
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compare ifisa6-16.2%SME £20yes, 0.5%12-60 monthsyesyes, freeyes, 0.1%Visit page
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compare ifisa7-11%various£1000yes, 0.25%36-60 monthsno yes, freeyes, freeVisit page
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compare ifisa8-13%property£1000yes, free6-60 monthsyesyes, freeyes, £50Visit page
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compare ifisa4.5-5%energy£100no36-60 monthsyesyesyesVisit page
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compare ifisa5-7.5%property£1000yes, manual24-60 monthsyesyes, freeyes, £35Visit page
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compare ifisa4-4.7%property£10free12-60 monthsnoyes, freeyes, freeVisit page
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compare ifisa6%SME£2000no60 monthsnoyes, £100yes, £100Visit page
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compare ifisa7-10%property£1000no4-12 monthsyesyes, freeyes, freeVisit page
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compare ifisa5-12%property£1000yes, 0.5%6-36 monthsyesyes, freeyes, freeVisit page
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compare ifisa2.7%-5%consumer£10yes1-60 monthsyesyes, freeyes, freeVisit page
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compare ifisa10-19%SME£100yes, 0.5%6-60 monthsyesyes, £75
minimum £1000
yes, £75Visit page
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compare ifisa7-10%property£500yes, free12-60 monthsnofree, min £1000yes, freeVisit page
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compare ifisa6%property£5000no60 monthsno yesyesVisit page
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compare ifisa7%property£1000no36 monthsnoyesyesVisit page
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compare ifisa5%green energy£500no> 120 monthsnoyes, freeyes, freeVisit page
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compare ifisa9-14%SME£5000yes, free12-60 monthsnoyes, freeyes, freeVisit page
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compare ifisa4-4.6%consumer£1000yes, 1%12-60 monthsyesyes, freeyes, freeVisit page
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