Frequently Asked Questions (FAQ)

The Relendex Innovative Finance ISA (IFISA) is an HMRC approved individual savings account which allows investors to earn tax-free interest on their Relendex investments.

No, any UK taxpayer can open an IFISA account with Relendex.

HMRC requires clear separation between the funds in Lender and ISA accounts, To distinguish between your accounts, unique email addresses are required for each account.

*If you do not have a second email address, it is simple to set a free one up with a new provider and auto-forward all incoming mail to your main account, so you never miss an email from Relendex.

Yes, there are limits to the amount that you can subscribe or invest in an IFISA in each tax year (beginning on 6th April and ending on the following 5th April of the following year). The maximum you can subscribe in the 2017/2018 tax year is £20,000.

The £20,000 limit is the annual allowance for All ISAs (in aggregate) held by an individual. This applies to all Cash, Stocks & Shares, Innovative Finance or Lifetime ISAs that you open in the same tax year. It is the ISA holder’s responsibility to stay within the limits.

*ISA Managers report deposits to HMRC, so any individual exceeding the permitted limit will be identified and taxed accordingly.

You cannot subscribe or invest in more than one IFISA in each tax year but you can subscribe to multiple types of ISAs in one year so long as you do not exceed the annual allowance limit.

No, The Relendex IFISA is not a flexible ISA. This means that you cannot replace, in whole or in part, cash you have withdrawn from your IFISA, and any and all subscriptions made during the tax year will count towards your subscription limit for that tax year.

Minimum investment for new ISA funds is £500. For transfer of existing ISAs, there is a minimum limit of £1,000

Not at present, but we reserve the right to introduce one at a future date.

No. There are no limits to withdrawing cash held in your account. To withdraw money held in yourLoan Parts you will first need to either sell them in the Resale Marketplace or wait for a loan repayment to provide the cash for the withdrawal.

When withdrawing funds from your Relendex IFISA always remember that the Relendex IFISA is not flexible. This means that you cannot replace, in whole or in part, cash you have withdrawn from your IFISA, and any and all subscriptions made during the tax year will count towards your subscription limit for that tax year.

No, HMRC does not allow such transfers. However, ISA rules do allow you to sell your Loan Parts in the Resale Marketplace, withdraw your cash and then deposit it into your IFISA. Please be aware sales take place on a matched-bargain basis so there is no guarantee your Loan Parts will find buyers.

To close your IFISA you must provide us with written instructions, via either email or post.

Please email borrower-support@relendex.com or call 020 7729 0070 with your enquiry. Please provide the following initial information as it will help us speed up our decision.

• Address of property
• Type of property
• Approximate age
• Principal use
• Total area
• Tenancy schedule (where applicable)
• Total rent
• Estimated market value of property
• Date of last valuation
• Loan amount you are seeking
• Purpose of loan
• Photo of property

The Relendex Secured Portfolio ISA combines the secured lending available on the Relendex Exchange with a unique Portfolio created for each lender in order to reduce risk, hassle and provide a target rate of tax-free return in excess of that usually associated with an ISA.

The Relendex Secured Portfolio ISA uses an algorithm to allocate loan parts available in both Relendex’s Live Auctions and from its Resale Marketplace. Only the highest grade investment parts (A+ and A) are allocated to each Secured Portfolio. As these are repaid by Borrowers, new parts are allocated, so that each Secured Portfolio remains invested in Loan Parts.

Yes Relendex Loan Parts are broken down into £500 units, The minimum required number of units to create a diversified portfolio is 5 units, that makes a minimum investment of £2,500.

You can still invest your ISA money directly in any of our loans either in the Live Auction or the Resale Marketplace

The Target Interest Rate is determined by each portfolio auction. The Target Rate, together with the duration of that rate, is shown for each Issue’s auction particulars. The Target rate is the rate of interest a lender will receive on the money placed in the Secured Portfolio, after all charges, and before any exceptional events. The Target Rate runs in force until the end of the loan period.

At least 30 days before the loan period expires Relendex contacts Lenders to offer them the opportunity to roll their loans into a new Secured Portfolio ISA. Depending upon market conditions the duration and target interest rate may vary from time to time.

Any Lender choosing not to lend in the new Secured Portfolio can lend these funds credited to their ISA Lender Account to any of our Borrowers either on the Live Auction or the Resale Marketplace, or can withdraw their funds in the usual manner.

Relendex anticipates Borrowers’ weekly funding requirements and matches the demand to the weekly Secured Portfolio issue loan amount. At the end of every week, all bids for the Secured Portfolio are matched to underlying Loan Parts.

As and when a weekly auction is fully taken up, the Secured Portfolio ISA will not be available until the following week. Lenders missing out on the weekly auction can wait until the next week, or bid either in the Live Auction or the Resale MarketPlace for Loan Parts.

Once a Lenders’ bid is successful, the Target Rate will be fixed for that loan issue’s duration. However, both Target Rates and durations will alter from time to time depending on market conditions.

Certainly. The Secured Portfolio ISA is designed to give Lenders a better rate of return than Cash ISAs. The Secured Portfolio is a managed product that is based on auto-allocation so that investors don’t need to take individual lending decisions. The return is lower than our self-select IFISA , as Relendex is taking most of the risk, management and all of the day to day lending decisions. Relendex hopes that once our Lenders feel confident about using our Exchange they will enjoy choosing loans themselves and achieve higher rates of return.

The Target Rate of Return is stated net of all services charges. However, there is a charge on cash withdrawals from the Secured Portfolio, if they take place within 12 months of the original loan issue. This charge is the greater of £25 or 1% of the amount of cash withdrawn.

Interest accrues daily but is paid quarterly in arrears. This means that interest is paid up until the day on which notice is given of withdrawal, but the Lender cannot withdraw interest until it is credited on the relevant quarter day, or as part of an early withdrawal or on maturity.

An exceptional event is one which is completely outside Relendex’s control and is not related to the performance of any single underlying Loan Part. The Secured Portfolio is designed to manage the lender’s risk and a single loan default would not adversely affect a lender. However, in the event that the entire UK property market, as defined by the UK House Price Index for new build property falls more than 10% in the loan issue period, then if an underlying loan defaults, the Lenders Capital may be at risk.

Absolutely not! The Secured Portfolio is very conservatively structured. The average Loan to Value is below 65% and some borrowers provide additional security too. In order for a Lender to lose even a small part of their capital, not only would a property have to realise less than 70% of its original valuation, but the additional guarantees and collateral given by the borrower would also have to realise no value. Only then if the whole market had fallen 10% or more would a Lender lose part of their capital.

If the UK House Price Index has fallen by more than 10% in the relevant period and the Loan Parts held by the Lender within his/her Secured Portfolio during the relevant period have not achieved the projected total return, then Relendex may, in its sole discretion pay a sum to Lenders to the difference between the projected total return and the actual total return.