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Peer2Peer Finance News | December 17, 2017

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How does LendInvest’s buy-to-let offering stack up to P2P rivals?

How does LendInvest’s buy-to-let offering stack up to P2P rivals?
Marc Shoffman

BUY-TO-LET lenders have fresh competition as LendInvest has launched a mortgage product aimed at professional landlords.

The specialist mortgage lender is using institutional funding secured from Citi to support the product, meaning it can originate far larger loans than its peer-to-peer competitors.

LendInvest said it will be offering buy-to-let loans through intermediaries ranging between £50,000 and £5m, with rates starting at 3.69 per cent depending on whether borrowers take a two, three or five-year fixed rate.

Read more: LendInvest cancels application for P2P authorisation

In comparison, Landbay facilitates fixed rate and tracker buy-to-let loans of between £70,000 and £500,000 from 3.55 per cent.

And fellow P2P lender LandlordInvest offers loans of between £30,000 and £300,000 from five per cent.

LendInvest, like Landbay and LandlordInvest, said that the maximum loan to value (LTV) is 80 per cent.

Assetz Capital also offers buy-to-let loans, but up to a slightly lower LTV of 75 per cent for facilities between £50,000 and £500,000, with rates starting from 6.4 per cent.

“Following a successful pilot phase, we are very pleased to launch our product into England, Wales and Scotland,” Ian Thomas, co-founder of LendInvest, said.

“This launch is a natural next step for LendInvest, taking us into the longer duration specialist lending space for the first time.

“Offering BTL loans is a critical strategic step that not only serves to address a continuing funding shortage, but takes us closer to our long-term ambition of becoming a leading whole-of-market mortgage lender.”

Read more: MarketInvoice, Funding Circle, Zopa, LendInvest make Fintech 250

LendInvest withdrew its P2P application from the Financial Conduct Authority earlier this year and stepped down from the Peer-to-Peer Finance Association, as it decided to tailor its platform to sophisticated and institutional investors.