LendInvest’s first retail bond saw the weighted average loan-to-value (LTV) across the portfolio rise by from 64 per cent in March 2020, to 68 per cent in December 2020, as the property market reacted to the Covid-19 pandemic and nation-wide lockdowns.
LendInvest Secured Income – a London-listed subsidiary of online property lender LendInvest – had a total value of £49.7m by 31 December 2020. At the start of the pandemic, the value of the loans was £55.5m.
There were 75 bridging loans in the LendInvest Secured Income bond at the end of last year, with all but one holding a first-ranking legal charge.
Two loans were in material arrears at the end of December, representing a total value of £3.9m. At the end of March 2020, the bond had one loan in arrears, with a value of £1.2m.
According to the latest market update, 99 per cent of the portfolio of loans were based in England, with one per cent based in Wales. 52 per cent of the properties in the bond’s portfolio were based in Greater London.
The interest coverage ratio increased during the pandemic, reaching 198 per cent in December, compared with an interest coverage ratio of 174 per cent by the end of March 2020.
LendInvest Secured Income came to market with a five-year retail bond issue in summer 2017. It closed early after a surge in investor demand.
The bond is set to mature on 10 August 2022, with a target return of 5.25 per cent.