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Peer2Peer Finance News | August 18, 2019

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Alternative property lenders make waves over the summer

Alternative property lenders make waves over the summer
Jordan Bintcliffe

THE SUMMER months are typically quieter but things have been hotting up in the alternative property finance sector, with firms launching new products, securing funding lines and expanding geographically.

Here we round up some of the latest developments in the space. 

Nexa Finance

A new alternative property lender launched this week, with a focus on the East Midlands. 

The business is currently just open to institutional investors but is planned to open to retail investors in 18 to 24 months.

The platform offers an average loan of around £700,000 with a 14-month term.

Landbay

Landbay last month announced a new £1bn funding line from an unnamed institutional investor to boost its mortgage lending.

“Landlords are vital for the UK’s economy, and this sizeable injection of capital will allow us to support even more of them and their brokers,” Landbay chief executive John Goodall said at the time.

The buy-to-let specialist also refreshed more than thirty of its products for professional landlords, reducing rates by up to 0.6 per cent and cutting fees up to 0.5 per cent.

JustUs

JustUs said in June that it is planning to launch residential owner-occupied mortgage products within the next three months.

The announcement came after the City watchdog confirmed that peer-to-peer lenders would be regulated under home finance rules.

This means that consumers will receive the same level of protection as they would from conventional residential mortgage providers.

Wellesley

Wellesley in July launched a new investment platform tailored for listed bonds after winding down its legacy P2P offering.

The alternative property finance provider launched the Wellesley Property Bond on the Euronext Dublin.

The ISA-eligible bond has a minimum investment of £1,000 and offers a one-year fixed rate at three per cent or three-year term paying annual interest of four per cent.

Cogress

Property investment firm Cogress this month launched an Innovative Finance ISA (IFISA), offering returns of up to 7.5 per cent.

The firm is launching three IFISA-eligible bonds, which are invested into property development projects across the UK. The bonds have a minimum investment of £5,000 and offer rates of between five per cent and 7.5 per cent, depending on the investment term.

Property Bridges

Dublin-based Property Bridges announced in July its plans to expand the business across every county in Ireland, after receiving a new cash injection from a Northern Irish investment firm.

Lagan Investments has taken a 10 per cent equity stake in the property-backed lending business, and it has also supplied up to €5m (£4.48m) in additional lending capital to support new housing projects.