LandlordInvest hits £1m on its secondary market

PEER-TO-PEER buy-to-let lender LandlordInvest has reached £1m of sales on its secondary market.

The platform, which launched its secondary market last year, announced 1,393 loan sales have been completed, worth an average of £730.

The highest loan sale was £50,000 and the lowest was just £100.

The number of unique sellers was 86 and the number of unique buyers was 150.

“We launched the secondary market in May 2017 and found it to be popular immediately, and we’re pleased to see this activity continue,” Joe Vallender, chief technology officer for LandlordInvest, said.

“LandlordInvest’s investors may wish to access their capital mid loan term and an active secondary market increases the chance they may do so.”

The platform reduced the fees on its secondary market last September from 0.50 per cent to 0.25 per cent.

The platform released its latest loan book earlier this month, showing it had lent £3.77m across 16 loans as of 5 March.

The average loan size stands at £235,516, marking an increase from the £210,535 average loan size the company posted in December 2017, when it first started to publish its loan book.

The average loan-to-value has risen to 67.1 per cent as of Monday, up from 63.7 per cent at the end of last year. Larger loan amounts and a larger portion of a property being financed with debt means lenders are taking a larger risk.

However, investors are being better compensated for the increased risk, with the average investor rate also creeping up.

LandlordInvest’s investors received an average rate of 13.35 per cent in the latest loan book, up from an average of 11.1 per cent in December.