Lenders ‘risking reputation’ with pandemic response

CrowdProperty chief executive Mike Bristow has warned other lenders are risking damaging their reputations by withdrawing from the market during the pandemic.

It comes as the peer-to-peer lender revealed the level of demand to fund development loans on its platform has meant the past 10 projects have funded in 55.1 seconds on average, raising almost £3m.

Read more: Property market on lockdown but P2P lenders are busier than ever

“Whilst we’ve significantly tightened our criteria, our strong direct route to market enables us to work with prospective borrowers to make sure that everything is ready, all elements are very well risk managed, and that in some cases they have more equity capital to put into the project,” Bristow (pictured) said in a lender update.

“Continuing to lend means that we are further enhancing our reputation amongst our target borrower market, at a time when other funders, with concentrated sources of capital that are exposed to equity market volatility, are stopping lending, reneging on offers and even refusing mid-project drawdowns.

“Many are destroying their reputations when it really counts, which means that in the short, medium and long-term, we will attract more and more applications, from which we can continue to curate the best to offer to you.”

Read more: P2P lenders give cautious welcome to property market reopening

Bristow said some projects may be delayed due to the pandemic but added that the platform is working with borrowers.

He added that CrowdProperty is in a strong capital position and is not considering cutting rates, stopping withdrawals or introducing lender fees as others have done.

Read more: P2P property platforms welcome return of major housebuilders