The Innovative Finance ISA Mega-Thread

Options
2456

Comments

  • Froggitt
    Froggitt Posts: 5,904 Forumite
    Options
    Except of course, HL aren't usually known for their competitive prices............

    Zopa give you that spread of mini loans at £10 a pop. Ratesetter don't, but their rates are better than Zopa, however they say that in the event of defaults exceeding the provision fund, it sounds like they do something like wind up all loans and spread the losses over all of them.
    illegitimi non carborundum
  • masonic
    masonic Posts: 23,407 Forumite
    Photogenic Name Dropper First Post First Anniversary
    Options
    colsten wrote: »
    This is true but it doesn't sit comfortably with the fact that you will only be able to hold one Iffy ISA.
    Well, you will only be able to subscribe to one per tax year. Like cash ISAs, you can hold many and through transfer of previous years subscriptions get to that position of having many in a relatively short timeframe. The main issue right now is lack of providers offering Iffy ISAs. Exactly zero significant providers at last count...
  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    Nick0101 wrote: »

    - As it stands, one ISA can only be opened with one platform each tax year. Meaning you could open an ISA with RateSetter in 2016/17 and a separate ISA with Funding Circle in 2017/18. This is of course subject to change.

    It's not about opening ISAs but about subscriptions to ISAs.

    A subscription is the deposit of new money.

    You are (/will be) only allowed to subscribe to 1 (not 2 or 3 or more) Iffy ISA in each tax year.

    Meaning: you need to pick which P2P provider you want to put new money into in a given tax year. For example, if you want to spread your money over 4 P2P firms, it will take you 4 tax years to do so in Iffy ISAs.
  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    Froggitt wrote: »
    Can I

    a) put £15k into one IFISA and
    b) transfer a £15k previous year's cash ISA into another IFISA?

    Subject to the Iffy ISA providers offering transfers in, I am pretty certain that this will be (is) allowed under the ISA rules.
  • masonic
    masonic Posts: 23,407 Forumite
    Photogenic Name Dropper First Post First Anniversary
    Options
    bigadaj wrote: »
    Yes, that's the point, if you open an ifisa with Zopa then presumably you can't then put a couple of grand in that, the same with rate setter, funding circle etc

    I don't want to punt £15k on one platform even if there is a spread of actual loans.
    Previous year money and cash ISAs with the new flexibility are going to be key in a diversified Iffy ISA strategy. I filled a cash ISA a couple of days ago for just that purpose.
  • MARTYM8`
    MARTYM8` Posts: 1,212 Forumite
    First Anniversary First Post
    edited 6 April 2016 at 8:16PM
    Options
    I like the short hand title Iffy ISAs.:D

    I understand the following providers are offering them immediately.


    Crowd2fund
    Abundance
    Crowdstacker
    Funding Tree
    Assetz Capital

    And when applying don't forget some providers have refer a friend offers where you and the referee could get up to £100 each on opening - lots of threads in the referral section.
  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    MARTYM8` wrote: »
    I like the short hand title Iffy ISAs.:D
    Agree, it is marvellous, that's why I like to use it. I think masonic may have the copyright for the Iffy ISA?
  • masonic
    masonic Posts: 23,407 Forumite
    Photogenic Name Dropper First Post First Anniversary
    Options
    MARTYM8` wrote: »
    I like the short hand title Iffy ISAs.:D

    I understand the following providers are offering them immediately.


    Crowd2fund
    Abundance
    Crowdstacker
    Funding Tree
    Assetz Capital

    And when applying don't forget some providers have refer a friend offers where you and the referee could get up to £100 each on opening - lots of threads in the referral section.
    Incorrect on at least one count. Assetz is still waiting on the FCA and has not yet launched an Iffy ISA, much to my disappointment :(
    colsten wrote: »
    Agree, it is marvellous, that's why I like to use it. I think masonic may have the copyright for the Iffy ISA?
    I would love to take credit, but I'm sure I just parroted the term from somewhere else.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Name Dropper First Post First Anniversary
    Options
    Froggitt wrote: »
    Except of course, HL aren't usually known for their competitive prices............

    Zopa give you that spread of mini loans at £10 a pop. Ratesetter don't, but their rates are better than Zopa, however they say that in the event of defaults exceeding the provision fund, it sounds like they do something like wind up all loans and spread the losses over all of them.

    No, they are an example and other platforms may arise with keener pricing.

    Assume hl are consistent with their equity option then their charges would be 0.45% per year on the sum invested, and say I wanted to split my ifisa allowance between say Savingstream, Ablrate and Moneything then I'd be reasonably happy paying that level of fee given the return on the invested amount would be in the region of 10-12%.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Name Dropper First Post First Anniversary
    Options
    masonic wrote: »
    Previous year money and cash ISAs with the new flexibility are going to be key in a diversified Iffy ISA strategy. I filled a cash ISA a couple of days ago for just that purpose.

    Fair point but it is dependent on the percentage of your wealth you are looking to invest in p2p in actual cash and percentage terms. Two full years allowance for an isa, so £30k and assuming £300k total investable assets, a 10% allocation to p2p.

    This amount on one platform, or even two, would be concerning in my opinion which is why a platform with the opportunity to split between 4 or more providers would be very attractive.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.5K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.8K Spending & Discounts
  • 235.6K Work, Benefits & Business
  • 608.5K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards