Lending Works Funding Surge
Lending Works’ overall figures for the first quarter in 2017 show a 24 per cent increase in the cumulative value of loans written. This increase was substantial compared to previous quarters – a 17 per cent increase in the quarter 4 of 2016, and a 12 per cent increase in quarter 3.
This growth has been encouraged by the launch of the peer-to-peer platform’s innovative finance ISA (IFISA) on 8 February 2017.
“We have written over £11.5 million in the year to date, which is indicative of the significant growth we’ve seen since the ISA launched,” Lending Crowd said to us.
Lending Works was the first (and so far the only) of the largest peer-to-peer market players to release an IFISA. Not only this, but it has been the first of the major players to obtain regulatory approval at all. The Financial Conduct Authority (FCA) gave the firm full authorisation in October 2016. The company achieved ISA manager approval from Her Majesty’s Revenue and Customs (HMRC) very shortly afterwards.
Lending Works expects demand to “swell further” following the ISA rule-change in the new tax year. Investors can now invest £20,000 compared to the previous tax-year’s limit of £15,240. This has meant the potential for bigger tax-free returns.
Research by Lending Works has shown uptake from Land’s End all the way up to John O’Groats. This research has also calculated a total of 816 lenders have joined the platform since the IFISA was launched (although this may have increased since), with the largest ISA transfer (from old ISA accounts) being as much as £154,900.
It has been reported that a number of ISA providers have benefited from a spike in inflows since releasing their IFISA products. We are seeing the product’s ever-growing demand, as well as alternative finance options such as peer-to-peer, edging further into the mainstream.