ACTIVITY on LandlordInvest’s newly-launched secondary market has been better than expected, with investors shrugging off political uncertainty to snap up loan parts in record time.
The peer-to-peer lender, which specialises in buy-to-let finance, launched its secondary market in the middle of May.
Filip Karadaghi, the firm’s co-founder and chief executive, told Peer2Peer Finance News that uptake had been higher than expected, with no signs of a slowdown ahead of Thursday’s UK General Election.
“Loans have been taken up very quickly, usually within five to 10 minutes,” he said.
“The biggest loan of £5,000 went within five minutes.
“In fact, someone asked if we had institutional investors buying up our loans as they were going so quickly.”
LandlordInvest launched the secondary market to attract more investors, by boosting liquidity and giving them the chance to earn money more quickly.
The firm charges a 0.5 per cent administration fee to investors, who will be restricted to selling their loans at par value.
As P2PFN reported last month, the platform is also mulling a move into property development finance as it sees “an interesting gap in the market”.
Karadaghi said this was still something the firm is considering, but added that it would be a complex process due to regulatory and underwriting changes so would not be happening in the near future.
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