Lending Works launches IFISA

The IFISA can only be offered by platforms who have attained both full authorisation from the FCA, and subsequently ISA Manager approval from HMRC.

Lending Works received confirmation of both permissions in late 2016, and the company has now become the first member of the industry-body Peer-to-Peer Finance Association to launch the new ISA product.

Consumers will be able to subscribe up to £15,240 each year with Lending Works, although they have the option of splitting this across all three ISA types – cash, stocks & shares and IFISA. This allowance is set to increase to £20,000 in 2017/18.

In addition, there will be no cap imposed on the transfer of funds accumulated over previous tax years within existing ISAs into an IFISA.

Nick Harding, founding CEO of Lending Works, commented: “We are delighted to announce the launch of the Lending Works ISA, giving investors the opportunity to earn higher rates of interest by using their ISA allowance to invest in peer-to-peer loans. This launch comes in response to unprecedented demand by investors, who are looking to new asset classes for income growth, at a time when other investments and bank savings accounts are often delivering mediocre returns, if at all.

“Our lenders tell us that they are crying out for yield generating products, such as our ISA. As the first major UK peer-to-peer platform to launch an IFISA, we are focused on developing a world-class customer experience and look forward to seeing our investors reap the benefits.

“Given the extraordinary level of interest from both existing and prospective customers in the build-up to the launch of our ISA, we expect to see a large spike in the volume of funds coming to our platform over the next couple of months as savvy investors look to make the most of this year’s ISA season.

“But what excites us most is the prospect of delivering sustained, long-term benefits to our customers via the Lending Works ISA for many, many years to come.”