Octopus Choice, the peer-to-peer (P2P) lending product distributed by Octopus Investments, today announced that it is accepting ISA transfers as it looks to offer investors more choice and flexibility ahead of the tax year end.
Octopus is enabling new and existing clients to transfer some or all of their ISA investments into the Octopus Choice ISA, which targets a tax-free variable interest rate of around 4 per cent per year by investing in loans secured against bricks and mortar.
The move creates an opportunity for financial advisers to add value by helping their clients target an attractive, inflation-beating return within their ISA wrapper, without taking on the associated risk of investing stocks and shares.
Sam Handfield-Jones, Head of Octopus Choice, said:
“Allowing transfers into the Octopus Choice ISA presents a new opportunity for investors to access the potential for inflation-beating returns, without further exposing their ISA to stock market volatility that so many are wary of. As part of a diversified portfolio, it aims to operate in this sweet spot by targeting an attractive rate of regular interest, by investing in asset-back loans.”
There are no charges for moving money in and out of the Octopus Choice ISA, and no minimum or maximum transfer limits, though there may be exit charges administered by other ISA providers.
Since launch, Octopus Choice has become one of the UK’s fastest-growing P2P products, with more than £110 million now invested, and was recently voted the winner of the Moneyfacts ‘Innovation Award’1 by financial advisers around the UK1. The Octopus Choice ISA was launched for customers looking to invest within their annual ISA allowance (currently £20,000 for the 2017/18 tax year) in August 2017.
Sam Handfield-Jones added:
“We’ve already seen strong demand from financial advisers and their clients for the product and we’re encouraged that for many this will mean gaining access to an ISA that works harder for them.”
Octopus Choice was launched in consultation with financial advisers in April 2016 – coinciding with the FCA’s decision to broaden the scope of advisers’ permissions to include P2P lending. Every loan is secured against property at conservative loan-to-values (currently averaging 60 per cent) and is underwritten by award-winning lending team, Octopus Property . Octopus also invests five per cent in each loan at first loss, meaning investors can get their initial investment back first, as well as receive any interest due to them before Octopus receives any.
Notes to editors:
1. Awards include Best Development Finance Provider (Business Moneyfacts Awards 2017 & 2016) and Development Lender of the Year (Bridging & Commercial Awards 2017)
For journalists in their professional capacity only. The value of an investment, and any income from it, can fall or rise. Investors may not get back the full amount they invest. P2P investments are not covered by the Financial Services Compensation Scheme (FSCS). Money invested through Octopus Choice is concentrated in loans backed by property and could be affected by market conditions. For the same reason, instant access to investors capital cannot be guaranteed. Personal opinions may change and should not be seen as advice or a recommendation. We do not offer investment or tax advice. We recommend investors seek professional advice before deciding to invest. Unless otherwise stated, all data and factual information provided within this document is sourced to Octopus and correct at 17 January 2018.
Octopus Choice is provided by Octopus Co-Lend Limited, 33 Holborn, London EC1N 2HT, which is authorised and regulated by the Financial Conduct Authority. FCA registration number: 722801. Octopus Choice is being distributed by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 3942880.