General investing versus ISA investing
All clients who open a London House Exchange ISA still have the option to invest outside the ISA. When making an ISA eligible investment, simply choose at the point of purchase whether you would like to invest through your ISA or with non ISA funds (general investing). Once you have invested you can track the performance of both general and ISA investments separately.
What is the minimum I can invest?
The minimum you can invest in a single property-backed loan is £1,000. This is the same for ISA and general investing. Property-backed loans are currently the only type of investment you can make using your ISA with London House Exchange.
How much can I invest each year?
Investors can subscribe up to £20,000 of new funds to invest in the London House Exchange ISA in the current tax year. The annual ISA allowance applies to all new deposits made across all types of ISA.
In addition, investors can transfer funds from other ISAs and reinvest capital and interest returned from previous investments at any time.
If you do not use your ISA allowance in a given tax year you cannot carry it over to the next year. The tax year runs from 6 April to 5 April.
How can I monitor the performance of my investments in my ISA portfolio?
Your ISA portfolio has its own dashboard, separate to your general portfolio, which allows you to track the performance of investments.
The portfolio dashboard allows you to see the status of the loans you have invested in, any capital that has been returned on completed loans and any interest paid for completed loans. You can also see all transactions made through your ISA portfolio in the Account History section.
How can I get my money back?
When you invest in property-backed loans with London House Exchange your capital cannot be accessed until the end of the investment term when the loan has been repaid. Interest accrued is typically paid at the end of the term.
Each property-backed loan investment has its own investment case and terms and conditions, with key details such as the expected term, interest rate and risks involved made clear.
Financial Services Compensation Scheme (FSCS)
Investments made through London House Exchange’s ISA are not covered by the Financial Services Compensation Scheme (FSCS). However, uninvested cash held in your London House Exchange ISA account is held in a segregated client monies account with Barclays Bank plc which, in the event the bank defaults, is covered by the FSCS up to £85,000 per person, per bank. See https://www.fscs.org.uk/ for more information.
Understanding the risks
Before investing in development loan bonds through London House Exchange, it’s important to understand the different categories of risk associated with this type of investment. As with all investments, particularly high risk investments, investors should diversify their exposure across a number of property development loans and limit exposure to any single loan accordingly. To learn more about the key risks when investing in development loan bonds click here.
To read our ISA terms and conditions, click here.