A new peer-to-peer lender has launched.
Landbay’s minimum investment is just £100 and it is the only platform where lending is exclusively for buy-to-let mortgages on UK residential property.
It offers a range of returns (3.5% to 10% pa) from a range of risk levels (three different loan-to-value bands) over a three year term, all with first security against residential property.
All applications are subject to a valuation that is arranged by Landbay and conducted by one of its approved partners, and then that valuation is subject to a satisfactory peer review by their independent valuation partner. On top of this, all applications are subject to a holistic affordability check that includes minimum Rental Coverage of 125%. In some instances, Landbay will also require a personal guarantee.
John Goodall, cofounder and CEO of Landbay, said: “Landbay is an important new innovation that will open the door to a much broader cross section of the public to the attractive returns available from investment in Britain’s residential buy-to-let market, a sector that was worth £21 billion in new lending last year alone.
“The peer to peer finance sector is booming in the UK, having just passed the £1 billion mark. It is great to see Britain genuinely leading the world in unlocking the huge benefits for the consumer of this breath of fresh air in finance.”
Borrowers can come directly to Landbay themselves or deal via a broker. Landbay is not involved in commercial property, bridging loan and property developer markets.
