Jump to content
House Price Crash Forum
Sign in to follow this  
Eddie_George

Landbay Brings The P2P Finance Model To Buy-To-Let In The Uk

Recommended Posts

P2P lenders have sprung up in recent years online. Zopa in the UK pioneered the model, and has raised significant funding. And the P2P finance model has even spread to insurance. Now the model is spreading again, in a rather specific vertical. In the UK property is no longer mere property. It has morphed into a form of money. This has seen an explosion in the ‘buy to let’ boom where property is bought and sold as an asset. The boom has largely been driven by the wealthy, and in London by the super rich. Just read this Vanity Fair article from last year.

Now a startup is aiming to bring the P2P revolution to this market, democratizing the process and making buy-to-let easier to reach for the less monied. It’s a big market. Some £21 billion went though buy-to-let mortgage lending in the UK in 2013. Just launched in Beta, Landbay is a seed- funded startup with a platform for P2P lending for property. It will offer lenders attractive (at lest compared to banks) returns (3% to 10% dependent on risk taken), on all secured against UK residential property to offer buy-to-let mortgages to borrowers. It claims to do this with a faster, more intelligent application process. With a minimum investment level of £100, that means it’s pretty accessible.

Landbay is hoping to appeal to savers and investors who have struggled to secure low risk returns at rates above inflation, whether from cash accounts, savings accounts, bonds or other traditional financial products. Competitors to Landbay’s model are Assetz and LendInvest, however, they focus mainly on lending for riskier commercial property and developer lending, not the residential buy to let mortgage market. It is not playing in the much riskier commercial property or bridging loan markets. The founders are CEO John Goodall, a founded of a recruitment consultancy who sold his stake. He’s joined on the tech side by CTO Gray Stern, who is a property tech specialist and Maulik Sailor. The UK property market is, in a word, bonkers so we’re likely to see other such sites appear soon.

http://techcrunch.com/2014/04/11/landbay-brings-the-p2p-finance-model-to-buy-to-let-in-the-uk/

Lowering the barrier for investment in enterprises is great, but it makes it easy for the sheeple to gamble on this sort of thing.

Edited by Eddie_George

Share this post


Link to post
Share on other sites
Guest spp

Wouldn't things like these suck up even more of the market?

The corporate takeover of UK 'HOMES'?

Born into serfdom.

Share this post


Link to post
Share on other sites

http://techcrunch.com/2014/04/11/landbay-brings-the-p2p-finance-model-to-buy-to-let-in-the-uk/

Lowering the barrier for investment in enterprises is great, but it makes it easy for the sheeple to gamble on this sort of thing.

Funding circle have moved in the same direction:

Property loans have additional security, making them an interesting investment opportunity. The majority of deals will take first charge over the funded property which means that should the borrower not be able to repay, we will take ownership of that property. In most cases we will approve loans at less than 70% loan-to-value (LTV), which means the value of the property should cover the cost of the loan.

linky

Share this post


Link to post
Share on other sites

The other thing to consider about P2P loans is that there is no credit creation, its an actual loan. If it took of on a large scale it might actually reduce prices as there will be less new credit money pumped into the economy.

Share this post


Link to post
Share on other sites

The other thing to consider about P2P loans is that there is no credit creation, its an actual loan. If it took of on a large scale it might actually reduce prices as there will be less new credit money pumped into the economy.

I'd feel more confident about that assertion if they were funding something else... ffs, this is just getting silly now (not you - the situation).

Share this post


Link to post
Share on other sites

Wouldn't things like these suck up even more of the market?

The corporate takeover of UK 'HOMES'?

Born into serfdom.

Ok, then we will juse build some more houses.

What's that? the government won't let us - oh right.

Share this post


Link to post
Share on other sites
The UK property market is, in a word, bonkers

I enjoy the fact that out there in the encouraging real world of entrepreneurial activity the uk property market is casually dismissed as 'bonkers', where most of the population here would think it was the main point in living and surely where money comes from.

The point has been made further up, but money sourced from peoples savings is better than a promise to pay back an unachievable sum in some make believe future.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   204 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.