LandlordInvest has partnered with a bank for the first time, to fund a property deal worth over £1.5m.
The peer-to-peer property lending platform is funding £410,959 and United Trust Bank will provide the remaining £1.2m, as a first charge coronavirus business interruption loan.
The loan will be used to help a borrower purchase vacant commercial properties in Oxfordshire for a total amount of £2.18m.
LandlordInvest’s loan was fully funded by 52 investors in six minutes with each lender investing an average of £7,903.
“It is a great testament to the platform and P2P in general and shows that banks and P2P platforms can work together to find innovative solutions for borrowers, whilst investors may earn higher returns than available elsewhere and with asset-backed security,” said Filip Karadaghi (pictured), co-founder & chief executive of LandlordInvest.
Karadaghi said the platform remains on track to make a small profit this year.
“Counting this loan, we’ve funded around £700,000 in loans in two business days,” he said.
“We’re taking risks more and are not seeing a negative impact on borrowers. It’s going steady. We’re looking to make a small profit this year and are still on track for that.
“Next year it’ll be interesting to see how it develops.”
Last month, LandlordInvest surpassed its £10m lending milestone.
In October, the platform broke even for 2020 after conducting second charge lending to developers that have received coronavirus business interruption loans.