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A peer to peer lending has launched into the BTL sector. Landbay aims to use crowdfunding to provide loans to property investors. Those landlords wanting to raise capital through the site can apply for loans between £50k and £500k in England and Wales.
The crowd funding site is hoping to raise money to lend by attracting small investors seeking a better home for savings that might currently be languishing in low return ISAs or saving accounts.
Once signed up a saver can deposit money, in £10 multiples that is then lent out to property investors. A saver had three levels of risk that they can elect to lend on, each with a different level of return.
The actual rate will be dependent on demand and will be finalised through an auction process.
I have absolutely no idea if the site will work.It might offer landlords another way to get their hands on funds and if anyone does gives it a go, please let us know how you get on.
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1 comment:
Looks like it would be an expensive option akin to a bridging loan.
Note in particular the Rollover fee:
CAN I ROLLOVER MY LOAN AT THE END OF THE TERM?
Yes, subject to a nominal fee of 1% Landbay will look to rollover your facility at a new fixed rate. This may be done at any time during the final year of your fixed rate.
The term of the loan is only five years with the fixed rate for just three years.
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