The new tax year has started and investors that have not yet found a home for their ISA money should look no further than P2P property lending platforms that offer Innovative Finance ISAs (IFISAs).
IFISAs have consistently outperformed the stock market over the past four years and are as attractive as ever with rising inflation. Couple this with P2P property lending platforms that offer good returns secured against UK property.
Here Peer2Peer Finance News lists a dozen IFISAs from P2P property platforms that investors should look out for.
Assetz Capital is now the largest UK P2P platform, having lent £1.4bn to housebuilders.
IFISA lenders can invest in the platform’s bridging, development, refurbishment or buy-to-let loans to earn up to 4.1 per cent per annum.
CrowdProperty has been consistently growing during the pandemic, with a 150 per cent rise in its loan volumes between 2019 and last year, according to Innovate Finance figures.
The platform allows lenders to earn up to eight per cent returns by investing in its first charge development finance loans, which can be held in an IFISA, and has recently launched a second charge product.
Lenders can earn up to 6.5 per cent per annum by investing in Folk2Folk’s buy-to-let, bridging and development loans.
Last year its IFISA delivered this, an average of 6.5 per cent for investors.
JustUs offers homeowner, guarantor, bridging and buy-to-let loans.
Last year the platform generated average returns of 8.08 per cent for investors through its IFISA.
Kuflink allows investors to generate returns from five to up to seven per cent gross annum, depending on the term of the loan.
The P2P platform, which offers bridging, development, property, refurbishment and auction finance products, says that it has seen over £3m in ISA transfers from major ISA providers.
The second charge development finance specialist has never lost any investor capital and advertises returns of up to 12 per cent per annum.
In 2021, LandlordInvest’s IFISA generated an average return of 9.77 per cent for investors.
By investing as little as £10, lenders can earn three per cent returns with a Loanpad ISA classic account and four per cent returns with ISA premium.
Analyst 4thWay recently rated the P2P bridging and development finance platform as one of the safest investments of any asset when it comes to managing risks.
Proplend allows lenders to earn from five to 12 per cent through its IFISA.
Last year, the P2P commercial property lending platform’s IFISA delivered 6.91 per cent average returns to lenders.
Relendex facilitates short and medium-term senior and mezzanine finance from £250,000 to £5m for commercial and residential property investments and owner-occupied commercial properties.
The platform advertises returns of up to 11 per cent through its IFISA.
Shojin Property Partners
Shojin Property Partners is targeting 10 to 15 per cent average returns from its IFISA this year.
Last year, the P2P property platform and mezzanine finance specialist generated an average annual return of 12 per cent to its investors via the tax wrapper.
Simple Crowdfunding is aiming for an eight per cent average return for lenders in its IFISA this year.
The P2P property lending platform resumed P2P lending in March, with changes to its business model and a live project for housebuilder Acorn Property Group on its website.
Sourced Capital is targeting up to 12 per cent returns in 2022, which can be held in an IFISA, after delivering 11.92 per cent last year on average.