LendInvest receives highest possible credit rating for sixth consecutive year
LendInvest has received the highest possible rating from European credit rating agency ARC Ratings, for the sixth consecutive year.
ARC affirmed LendInvest’s SQ1 Servicer Quality Rating, with a stable outlook for the year ahead.
The credit risk firm, which is registered with the European Securities and Markets Authority, gave the online property lender the rating after assessing its governance, due diligence, risk mitigation, internal controls, financial strength and management and staffing as well as how the platform underwrites and services loans.
ARC said that there have been no material changes in the overall servicing of LendInvest’s portfolio and forecasted a stable outlook for the lender as it believes this will continue to be the case in the short-term.
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“After an unprecedented couple of months for the industry as a whole, it’s fantastic to see LendInvest recognised for its ability to weather a crisis and receive the highest possible rating for the sixth year running from such a respected rating agency,” said Rod Lockhart, chief executive of LendInvest.
“The business invests heavily in the development of its proprietary technology and continuous improvement of its internal processes, putting us in a perfect position to remain open for business, while offering the same seamless experience that our borrowers and brokers expect.”
ARC said LendInvest’s servicing systems and controls are unchanged from last year and the lender’s ability and policy to review all of its forbearance applications supports its SQ1 rating.
The credit risk firm showed that LendInvest’s cumulative loss rate has dropped over the past year, decreasing from 0.60 per cent to 0.55 per cent for the lender’s bridging loans and falling from 0.11 per cent to 0.09 per cent for its development loans.
ARC also said that the online lender is in a reasonable financial position given its available liquidity following two securitisations of its buy-to-let portfolio.
Read more: LendInvest notes benefits of development exit finance during pandemic
LendInvest recently increased its loan-to-values within its buy-to-let and bridging finance ranges, as confidence returned to the housing market after lockdown restrictions eased.
