Unbolted launches pawnbroking IFISA
Peer-to-peer (P2P) pawnbroking platform Unbolted has unveiled its first Innovative Finance ISA (IFISA) product.
The IFISA will target tax-free returns between six and ten per cent per annum, although actual returns will vary depending on the loans selected. It is a flexible ISA, which means that up to £20,000 can be invested during each tax year, and money can be withdrawn and reinvested without affecting the annual allowance.
Unlike most other P2P platforms, Unbolted offers loans which have been secured against items that would traditionally have been pawned. These may include jewellery, classic cars, fine wine, luxury watches, or specialised industrial equipment.
The assets are held as security for lenders, and the platform offers additional assurances through its own Provision Trust, which is funded by user set-up fees.
Every loan made against gold items is protected by the Unbolted Gold Trust, which ensures that lenders won’t lose money due to a fall in gold prices during the term time of the loan.
Unbolted’s IFISA investors can choose to use either the self-select investment option, or the auto-lend function.
Self-select investments require the investor to manually choose each individual loan that they want to help finance. These investments can often generate higher returns, depending on the investor’s ability to choose good loans and the portfolio that is chosen.
Auto-lend investments are made by Unbolted on behalf of the investor, who can choose to invest in gold-only loans, non-fold loans, bespoke loans, or all loans.
Updated: Thursday, January 9th, 2020