LENDINVEST has cut its minimum loan threshold from £100,000 to £75,000, as it expands into other parts of the UK.
The online mortgage lender, which is a member of the Peer-to-Peer Finance Association, has launched in Northern England and Scotland in recent months, as part of its strategy to become a nationwide lending business.
A smaller minimum loan size reflects the lower average property prices outside of London and the Southeast.
“By reducing our loan size, we will automatically open up the LendInvest proposition to more prospective borrowers working and investing in UK towns and cities far beyond London and the Southeast,” said Matthew Tooth, chief commercial officer at LendInvest.
“2017 will be the year that we look to accelerate our lending throughout the country.”
Unlike many of its peers, LendInvest is profitable. The firm posted full-year profits of £3.4m in October and a 133 per cent rise in revenue to £32m. All loans are secured against property and investors can expect returns of at least five per cent per year.
The company provides short-term property finance and was spun out of Montello Bridging Finance in 2013. It has originated over £664m of loans to landlords and developers for terms lasting between one month to three years.