LANDLORDINVEST, the peer-to-peer lending platform for residential and commercial real estate mortgages, has lent more than £5m to professional landlords since its inception.
The platform, which launched in December 2016, announced on Thursday that it has lent a total of £5,209,745 across 25 bridging and buy-to-let loans.
The average loan amount was £208,390, on an average term of 9.5 months.
Investors have earned annual returns of 11.3 per cent on average.
Filip Karadaghi, LandlordInvest’s chief executive, said the platform is becoming an established alternative source of financing for professional landlords, in a time when regulation and tax changes make it more difficult to obtain financing from traditional lenders.
“At the same time, LandlordInvest’s investors have been able to earn double digit returns by lending to an asset-backed product secured by residential or commercial property, beating the inflation rate and exceeding the returns offered by many other traditional asset classes such as bonds and stocks,” he added.
The figures come after LandlordInvest revealed in May it had almost doubled the size of its loan book in the first five months of 2018, thanks to a boost from Innovative Finance ISA (IFISA) subscriptions.
The company said that its investors opened 121 new IFISA accounts in the 2017-18 tax year, equating to total subscriptions of £1.65m, alongside £536,404 of ISA transfers.