Octopus Investments' peer-to-peer (P2P) platform Octopus Choice has launched an Innovative Finance ISA (IFISA), offering a tax-free variable interest rate of up to 4% per annum.
The product allows clients to invest in property loans, which are held by professional investors and are secured at a conservative loan-to-value ratio, currently averaging at 60%. The loans are underwritten by the platform's lending team Octopus Property, which has lent more than £2.6bn so far with a default rate of less than 0.1%, the firm said. Octopus Choice will also invest 5% in each loan at "first loss", meaning if the property depreciates in value the platform would lose its investment first. Octopus launched its P2P platform in April 2016, to coincide with the regulator's p...
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