LandlordInvest expects to double its revenue in 2021 and partner with another peer-to-peer property lending platform on deals after achieving a small profit of £2,400 last year by increasing its second charge lending.
In 2020, the platform saw its loan volumes fall by around 30 per cent as a result of the pandemic.
However, Filip Karadaghi (pictured), chief executive of LandlordInvest, said this was mitigated through the lender’s head of sales leaving at the start of 2020 and the platform conducting more second charge lending, including second charge lending for coronavirus business interruption loan scheme loans.
He said this year he expects LandlordInvest’s revenues to double this year and that is looking to collaborate more with banks and another peer-to-peer property lending platform.
“We made a £2,400 profit, it’s not huge but it’s a profit and more than most firms can say,” said Karadagh.
“Our loan volumes dropped quite significantly, by around 30 per cent, we reduced our workforce, our head of sales left the firm at the beginning of last year and that was a significant cost saved and once he left the originations just went to us directly.
“At the same time even though we did fewer loans, a higher proportion of these were second charges and they have significantly higher revenues so we earned a higher spread than we usually did. This combined with our head of sales leaving resulted in a small minor profit.
“There’s a space for second charge lending because there’s so few operators in the UK and some had difficulties with Covid. We think we will double our turnover this year and are on good track for that. I’m quite certain we’re able to double our revenue, we will generate a larger profit than last year.
“We are working on our first ground up development deal with Hampshire Trust Bank and are looking to deepen further relationships with banks and are speaking with a P2P platform to provide second charge lending on deals they provide the first charge for.
“We are very optimistic about this year and want to make sure can take additional steps to remain a leading platform.”