Will lending rates go up while people wait for IFISA launch?

So might it affect the one year or five year rates if less is being committed to those markets until the IFISA launches? 

If, as Ratesetter surely hope, it will increase the number of lenders and therefore the amount offerred to borrowers, it will probably have the opposite effect of depressing rates to lenders once launched, in the meantime the level of demand for loans is more likely to influence rates , as it has over the past few months, than anticipation of IFISA..

Currently I don't lend at less than 6% before tax (3.6% after tax) to balance the risk of capital loss.

I will be prepared to lend as low as 4% on the 5 year market from my ISA as this gives as good a return.

If others think like me, rates could be permanently lower (and non-ISA products become unattractive).

5 year rates have dropped significantly in the last few months and this could be partly due to other P2P sites' ISAs going live and putting pressure on rates across the market.

I wonder if the Government thought all the implications through when they created the IFISA?

Good luck,
Mark

And if you need proof, just read the tax rule book. Actually no, that'd be cruel and unusual punishment .. just try to lift the damn thing.