Savings & Investments

Octopus launches Innovative Finance ISA

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9th August 2017
"At a time of low interest rates, rising inflation and ever-present stock market instability, an alternative tax-efficient investment solution has never been more important"

Octopus Investments has launched its Innovative Finance ISA through peer-to-peer lending product Octopus Choice.

The Octopus Choice ISA allows investors to target a variable interest rate of around 4% per year, tax-free, on investments within their annual ISA allowance.

Investors can choose an amount from as little as £10, which will be invested by Octopus in carefully selected loans secured against property in the UK and underwritten by its lending team, Octopus Property.
 
Octopus also invests 5% in each loan at first loss, meaning investors can get their initial investment back first, and receive interest due to them before Octopus earns any.

Sam Handfield-Jones, Head of Octopus Choice, said: “I believe at a time of low interest rates, rising inflation and ever-present stock market instability, an alternative tax-efficient investment solution has never been more important or valuable to investors. We are thrilled that we can now help them include Octopus Choice within their ISA planning.
 
“Since we launched Octopus Choice in April 2016, it has become one of the UK’s fastest-growing P2P products, having already facilitated over £130 million of lending across nearly 200 loans to date. The Octopus Choice ISA offers investors exactly the same product but within the ISA wrapper, and we expect today’s launch to bolster the impressive demand we have already witnessed for this product.”

Mario Berti, CEO of Octopus Property, added: “We continue to see robust demand from high-quality borrowers across all areas of our business and have just completed our most comprehensive product review since we launched in 2009.  
 
“As part of our unique Lifecycle Lending proposition we have launched a range of new products to help ensure that we offer competitively priced, flexible lending solutions to our borrowers. In order to support the demand for our widened product range we have continued to grow the Octopus Property team, thus helping to ensure that our coverage, market knowledge and underwriting capacity remains first class.  
 
“We believe that the fundamental shortage of housing in the UK will continue to support the UK real estate market over the long term and are confident that the Octopus Choice ISA provides an ever-widening investor group with access to this important asset class. Our track record in the market and the first loss investment made in every loan by Octopus is clear evidence of this.”

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