Few people haven’t come across the easy® brands created by Sir Stelios Haji-Ioannou. And, as you’d expect, the easyMoney brand is based very much upon the same principles as previous offerings, such as the EasyJet budget airline business.
Stelios promises investors that they’ll get ‘a better return on their investments through simple, honest products that offer more value, for less’. With the recognisable orange website claiming returns of up to 12%, it would appear, initially, that with easyMoney, he’s done that.
While the easyMoney brand was incorporated back in 2003 to offer credit cards, it was only this year when the company ventured into the IFISA market with a test product, then known as their ‘Conservative’ IFISA.
A ‘Balanced’ IFISA offering a higher rate of return for a higher LTV came next. These have now been replaced with the three tiered products outlined below.
easyMoney Customer service
easyMoney’s website is fairly straightforward and it’s quite quick to set up an account with as little as £100. If you’re transferring an existing ISA, you’ll need your ISA manager’s details handy to make the switch.
Overall, the easyGroup has a reputation for fairly decent customer service, but being a relatively new offering, there are very few online reviews to attest to that.
- easyMoney has been around since 2003
- First IFISA was offered in February 2018
- Returns between 4.05% and 12%
- Minimum investment of £100 (Classic product only)
- Quick to set up
- No fixed term – withdraw anytime
- Loans secured by UK property assets
- Invest £1000 and get easyMoney Plus membership free of charge
- Secondary market available, subject to demand
- Maximum LTV of 75%
The easyMoney ISA
easyMoney entered the market in February of 2018 with a ‘Conservative’ IFISA (now Classic) with a targeted return of 4.05% but since then has launched two other products.
The Classic product is targeting those new to the IFISA market with a minimum of £100 to invest, however, once your fund exceed £10K, you’re automatically moved into the higher paying Premium category.
The Premium IFISA aims for a return of 7.28% – one of the more attractive rates on the market, however, it does require a minimum of £1000 to be invested. The big USP here is that you get easyMoney Plus membership free – giving you discounts at a number of high street retailers and cinemas.
The 12% return boasted on the home page of the easyMoney website is the very upper end expected in the High Net Worth product. This IFISA has been designed for property professionals who need money fast and requires an eye-watering minimum £100,000 investment – so this is one that’s is clearly not for newcomers.
Investor funds are split into multiple property backed peer-to-peer loans offered to individuals, businesses and infrastructure projects. There are two ways of getting your money back: either wait until the loan matures or sell to others on the platform.
easyMoney Professional Investor
Target Rate8.25% p.a.
Investors get an easyMoney plus membership.
easyMoney High Net Worth
Target Rate8.00% p.a.
Investors get an easyMoney plus membership.
easyMoney Premium Innovative Finance ISA
Target Rate7.28% p.a.
Get a valuable easyMoney plus membership FREE.
easyMoney Classic Innovative Finance ISA
Target Rate5.12% p.a.
Get valuable easyMoney plus membership FREE.
The loans are secured with a first legal charge over the property. While the products are covered by the FCA (Financial Conduct Authority), as with others, you won’t be covered by the FSCS (Financial Services Compensation Scheme)/
With easyMoney being a new provider, there may be concerns about liquidity when it comes to the secondary market, as well as the availability of new lenders to replace the loan commitments of exiting lenders.
easyMoney’s claim of 12% returns on their homepage will certainly be attractive to investors, but there’s a huge minimum investment required here and investors need to be aware this only a target rate: there’s no guarantee this will be achieved and it’s very early on to estimate what the actual rates of return will be with any of these products, so this is a little misleading.
There are certainly other IFISA products that look to be a safer bet for your money, but if want discounts on your shopping while investing in a new IFISA provider with provider with a solid track record in other financial industries, then easyMoney might be just up your street.
Updated: Tuesday, March 12th, 2019