A new peer-to-peer lender offering retail investors returns of up to 10% on near prime buy-to-let and bridging loans is set to launch in the coming weeks.
Filip Karadaghi, LandlordInvest’s chief executive, said it will be a direct competitor to LendInvest and will start trading in a matter of weeks once it gains authorisation from the Financial Conduct Authority, adding that should happen later this month.
The platform aims to offer loans to professional landlords who have suffered a credit blip in the past – though it has been clear it will only look at near prime borrrowers with a one off adverse credit event in the past five years.
Karadaghi said: “We will be the first P2P lender that is looking to bridge the gap between near prime property borrowers and a lending market which last year stood at around £30bn.
“We do not believe that it is fair or rational that borrowers, with nearly perfect finances, are unable to borrow because of missing a single payment years ago, caused by an unexpected life event such as a divorce or illness.
“Our retail and institutional lenders will be able to obtain higher returns than offered through other P2P lending platforms, as they will be providing financing to an unserved borrower market.”
Borrowers can take out Buy-to-let loans between £30,000 and £300,000 for up to five years. They can also raise short-term financing, bridging loans with a maximum term of 18 months.
Investors can lend a minimum of £100 with returns between 5% to 10% per annum depending on which borrowers they choose to lend to.
Before he co-founded the company with chief financial officer Nik Smirnovs Karadaghi had a background in investment management. After starting at Bloomberg he eventually came to represent a company which owned Fisher Island in Miami when working for Hunnewell Partners.