Compare P2P lending accounts and IFISAs now

Best Innovative Finance ISA (IFISA)

These are among the best bricks-and-mortar IFISAs in the UK. Based on lending to landlords of rental properties.

Highest Interest IFISA

7.32% Interest Rate

Tranche A, 0-50% LTV Loans Against Property Receiving Rent

3/10

10 indicates the highest risk.

Fantastically good security backed up by steady borrower income.

Read our full Proplend review here.

Lowest Risk IFISA

3.34% Interest Rate

Fixed Rate Classic Account

2/10

10 indicates the highest risk.

Strict lending criteria and low-risk BTL mortgages for lenders.

Read our full Landbay review here.

Most Accessible IFISA
Lend From Just £1

4.12% Interest Rate

Property Secured Account

4/10

10 indicates the highest risk.

Fantastic results from unique property and secured business loans.

Read our full Assetz Capital review here.

Note: if you want to stick to lending against rental properties with Proplend and Assetz Capital, you need to pick the loans for yourself.

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WHAT ARE THE BENEFITS OF P2P LENDING IFISAS?

Higher Reward than Cash ISas

Generally, IFISAs pay you higher interest in the range of 5% to 10% if you spread the risk properly.

Lower risk than stock market

Your money is usually at less risk than the stock market even over shorter periods of time.

Tax-Free

The lending interest you earn is tax free. It remains tax free regardless of how much your pot of money grows over the years.

more Stable Returns than the stock market

IFISAs collectively pay far more stable interest rates than the volatile stock market.

IFISAs: Frequently asked questions

IFISAs open up bank lending and other kinds of lending to the small investor.

Depending on the IFISA, you can lend to other individual borrowers, to small businesses, to buy-to-let landlords, or to other property owners.

Most IFISAs are specifically peer-to-peer lending, which means that you lend directly to the end borrowers.

Click here to read more.

Peer-to-peer lending generally sits in between savings accounts and the stock market. The majority of people lending their money through P2P can expect to become wealthier, earning far higher returns than savings accounts and cash ISAs, but with less with risk than the stock market.

Click here to read more.

Some P2P lending companies will let you lend as little as £10 spread across 100 borrowers. Others require you to invest at least £10,000 in each loan you want to take part in. But most are around the £20 to £100 mark.

Theoretically, you can lend as much as you want, provided there are enough borrowers and the interest rates you offer to borrowers aren’t beaten by lower bidders.

You can lend to both individuals and businesses. You can lend to prime, low-risk borrowers, high-risk borrowers, or anything in between.

With dozens of P2P lending companies to choose from, the types of lending you can do is expanding rapidly:

  • Consumer loans.
  • Business loans.
  • BTL landlord and property developer loans and mortgages.
  • Infrastructure loans (such as lending against energy projects).
  • Loans against personal property (such as pawnbroking or taking rich people’s yachts as security).
  • Loans against business invoices (where you pay businesses who are owed by their customers, and they pay you back plus interest when the customer repays.

In a typical year, after deducting fees and bad debts, you can do far better than savings accounts at around 5% or even better than the stock market at closer to 10%. Very roughly speaking, higher interest rates can mean higher risk.

If you lend £5,000 today and make an average of 6% (after accounting for all the costs and any losses), after five years, you could have made well over £1,500, which is well over £1,200 for a basic-rate taxpayer and about £1,000 for a higher-rate payer.

A typical bank paying 2.5% interest for five years in a tax-free ISA would still pay out hundreds of pounds less, even for a higher-tax-rate paying P2P lender, at under £700.

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

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Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
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