LANDLORDINVEST has decided to cut the charges on its secondary market rather than scrapping the fees.
The peer-to-peer property platform had been trialling the removal of secondary market sale fees but has decided to reduce them instead as the platform was still facing administrative costs.
The platform said the trial increased activity on the secondary market but users had complained about receiving too many email alerts.
From today, the secondary market sale fee has been reduced from 0.50 per cent to 0.25 per cent.
Secondary market listings will now, in addition to weekdays, also be processed on Saturdays between the hours of 12am – 4pm.
“It has been an interesting experience and it has without any doubts increased activity on the market,” Filip Karadaghi, chief executive of LandlordInvest, said.
“However, we have also received quite a few complaints about the emails that go out each time a new loan listing becomes available – the frequency of these emails has prompted around 40 per cent of those that had email notifications enabled to switch them off during the trial period given the volume of emails that they have received.
“Further, as we are still not prepared to fully-automate the secondary market, and will require an admin to review and approve each transaction, we will continue incurring administrative costs.
“I am aware that this may be disappointing for some lenders, but we need to ensure that the secondary market is of benefit to all lenders and fulfils its main objective which is giving lenders the possibility to exit their investments before maturity.”