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Post by wengyeeRelendex on May 24, 2017 10:41:01 GMT
Hello all, We've now officially launched our Innovative Finance ISA. It works alongside our regular offering. In case you need a refresher, we specialise in secured property loans with rates 7-10%pa. Overview of our ISAHow to transfer an existing ISA
Please feel free to ask if you have any specific questions about it. Regards, WengYee *Funds lent through Relendex are loans and not deposits. That means your capital is at risk. IFISA is not covered by FSCS. |
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littleoldlady
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Post by littleoldlady on May 24, 2017 18:01:37 GMT
Warning if you are planning to transfer in a previous year's cash ISA. The minimum transfer amount is £10K and there are no loans at present. If you want reasonable diversification there could be considerable cash drag waiting for loans which makes the tax saving marginal at least for 20% 'ers. It takes a couple of weeks or so to complete the transfer so there is no guarantee that a loan will wait for you.
A pity, but I just don't see how it can work.
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metoo
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Post by metoo on May 25, 2017 4:01:22 GMT
Hi wengyeeRelendex , I see you have 6 new loans in the pipeline. Can you give any idea how much these will total, and over what timescale? It's a challenge for anyone looking to fill an ISA transfer to work out how quickly they could get invested, and sad that it is not a Flexible ISA so that cash drag could be managed. Can you confirm there is no fee charged to lenders for any aspect of the Relendex ISA at the moment? May I ask how long Relendex has been lending for? Regards, metoo |
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Post by wengyeeRelendex on May 25, 2017 13:38:22 GMT
littleoldlady We are actively working on our loan pipeline to ensure that there is always a loan up. There is always the option to buy Loan Parts off our secondary market and start earning interest immediately. metoo The coming soon list is for loans that are close to listing. I can't provide an exact timescale but we expect a number of them to list within a month. Yes there are no fees charged for our ISA. Relendex has been operating since 2013, although did see us with a relaunch in August 2016 (we have listed 9 loans since then).
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littleoldlady
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Post by littleoldlady on May 25, 2017 15:33:37 GMT
littleoldlady We are actively working on our loan pipeline to ensure that there is always a loan up. There is always the option to buy Loan Parts off our secondary market and start earning interest immediately. I was aiming to spread my investment over at least 10 loans for diversification. If I was intending to put £100k in that would not be so much of a problem as I could transfer in £10k amounts, but even then I would either suffer cash drag if I had £10k waiting, or else, if I waited for a loan before requesting a transfer, risking the loan filling before the transfer completed. But I am not such a wealthy investor. 10 loans at £1k each to start with would be more what I had in mind. So unless you can reduce the minimum transfer in amount substantially, ideally down to £1k, I can't see it working for me or many others like me. Remember, most of us like to diversify across platforms as well as across loans, so whilst I do have £100k earning next to nothing in old cash ISAs I will not put it all into one platform, particularly not a young one that I have not previously used. I hope you will consider these points as I do wish your platform well.
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metoo
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Post by metoo on May 25, 2017 15:45:51 GMT
wengyeeRelendex thanks for your response. I hope Relendex might reconsider the possibility of allowing the ISA to operate as a Flexible ISA. This permits lenders to transfer in an ISA, but then temporarily withdraw cash while waiting for investment opportunities. Of course if the secondary market has enough to meet demand that would not be necessary. When I looked last night there was only £10,000 on the market and I imagine demand would be high if you receive ISA transfers. A Flexible ISA should overcome reluctance to take up the ISA, and avoid dissatisfaction amongst those who do open an ISA with you, especially ISA transfers. It would actually reduce your administration costs because lenders can transfer in their ISA once, then manage their cash as investment opportunities for the ISA arise. Perhaps you will be able to pass these comments on for consideration?
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littleoldlady
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Post by littleoldlady on May 25, 2017 17:31:25 GMT
wengyeeRelendex thanks for your response. I hope Relendex might reconsider the possibility of allowing the ISA to operate as a Flexible ISA. Perhaps you will be able to pass these comments on for consideration? That's an interesting idea which could solve my problem. So I can transfer in £10k, invest £1k on the platform, withdraw £9k and park that somewhere very liquid like QAA or OC, then each time a new loan comes along put £1k back in? Is that how it works?
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metoo
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Post by metoo on May 25, 2017 22:23:17 GMT
wengyeeRelendex thanks for your response. I hope Relendex might reconsider the possibility of allowing the ISA to operate as a Flexible ISA. Perhaps you will be able to pass these comments on for consideration? That's an interesting idea which could solve my problem. So I can transfer in £10k, invest £1k on the platform, withdraw £9k and park that somewhere very liquid like QAA or OC, then each time a new loan comes along put £1k back in? Is that how it works? Yes, exactly. The money has to be back in the ISA by the last day of the tax year (5 April) to preserve the allowance, but of course one would want to get the money invested inside the ISA as soon as possible. It's particularly beneficial for a small platform where it takes time to build up a portfolio of loans.
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littleoldlady
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Post by littleoldlady on May 26, 2017 7:56:10 GMT
Thanks metoo . But would that mean that this ISA would then become my current year's ISA? I would not want that. edit: did some research and it seems the answer is 'no'. metoo's method involves a lot less admin than my original idea because there will only be one ISA transfer with it's paperwork, postage and delay. After that all transactions can be on-line. |
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Post by wengyeeRelendex on May 26, 2017 10:29:16 GMT
Hi littleoldlady and metoo, Thank you for your feedback. I'll pass it on to the board for consideration. Regards, WengYee |
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archie
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Post by archie on May 26, 2017 10:34:03 GMT
Thanks metoo . But would that mean that this ISA would then become my current year's ISA? I would not want that. edit: did some research and it seems the answer is 'no'. metoo 's method involves a lot less admin than my original idea because there will only be one ISA transfer with it's paperwork, postage and delay. After that all transactions can be on-line. As long as you don't put back more than you took out the current year ISA allowance isn't used.
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