It’s an exciting time to be a peer to peer (P2P) lender. The announcement from the Government last week that they are a launching a consultation into extending ISA eligibility to include P2P lending will provide a boost to an already thriving sector. If agreed, the newly-created P2P ISA will mean savers have the chance to earn better returns on their tax-free savings allowance.
It’s not surprising that P2P has experienced such astonishing growth in the last two years, with a prolonged period of low interest rates, most easy access savings accounts are now delivering meagre returns of less than 1% interest. By comparison, P2P platforms currently boast an average of 5%+. With P2P loans already surpassing the £1bn prediction (P2P Money) for 2014, the new ISA will well and truly bring this sector into the spotlight.
The announcement strengthens and adds credibility to the industry, making the concept of P2P more appealing to a wider audience, to those who would not have previously considered this new kid on the financial block. Are you ready P2P? It’s time for your close up.