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LandlordInvest launches first property-backed Innovative Finance ISA

Peer-to-peer (P2P) lender, LandlordInvest, has become the first P2P platform to launch a property-backed Innovative Finance ISA (IFISA).

The launch comes after the FinTech firm, which offers buy-to-let and bridging loans, became one of the first clutch of alternative lenders to be granted full authorisation by the Financial Conduct Authority (FCA) in December last year.

At the time, LandlordInvest also said it was in discussions with the HMRC to become an ISA manager, a process which has presumably now been completed.

Launched in April last year, the IFISA allows P2P investors to get a better return on their alternative finance investments by enabling them to earn interest free of income tax.

Filip Karadaghi, LandlordInvest’s Chief Executive said that the ISA is the first property-backed IFISA which will provide savers with access to one of the UK’s strongest performing asset classes.

He commented: “This is a historic moment for LandlordInvest and UK savers. Our property-backed IFISA provides savers with the first opportunity to access one of the UK’s best performing asset classes, residential property, held in a tax-free wrapper.

“Our property-backed IFISA may offer savers higher returns than offered by Cash ISAs, and without exposure to or correlation with the volatile stock markets. We believe that the property-backed IFISA will broaden the appeal for peer-to-peer lending and advance it towards becoming a mainstream asset class.”

Other fully authorised FCA lenders include Zopa, Landbay and Crowd2Fund, who are all working on their own IFISA launches.

Earlier this week Goji, the provider of P2P products and platforms, revealed that Landbay, Downing, Peer Funding and UK Bond Network had all selected it to develop their IFISA offerings, with launches touted before the end of the tax year.

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