Landbay has completed its first mortgage loan, the UK’s first ever buy-to-let mortgage funded by peer-to-peer lending.
The professional landlord taking out this mortgage came to Landbay via buy-to-let mortgage broker Mortgages For Business.
Savers looking to gain better returns on their money through Landbay will receive monthly interest on their lending of between 4.1% and 9.3%, dependent on which risk/return category they chose; A+, B or C.
The professional landlord taking the mortgage will pay an aggregated rate of 5.12% fixed for three years on a five year term on the £175,000 loan, based on a 74% loan to value. The loan is being used to replace the existing buy-to-let mortgage which was about to revert to 6.58% after a lower, fixed rate period. The property on which the loan is secured is a two-bedroom terrace house on the south coast which was built in 2011, and is already rented out.
Landbay currently has a further five mortgage offers out with landlords, representing a further £750,000 of lending. The business expects to complete five or six new mortgages per month for the next six months.
John Goodall, cofounder and CEO of Landbay, said: “It is great to get the first mortgage under our belts, funded by 85 individual lenders, who are now set to enjoy great returns and at a level of risk they have chosen themselves. We have a number of further buy-to-let mortgages in the pipeline, many introduced to Landbay by our mortgage broker partner Mortgages for Business, so we are very much up and running and expanding our ability to help the millions of frustrated savers in this country who would benefit significantly from a better deal.”
Steve Olejnik, sales director at Mortgages for Business, added: “Landbay provided an ideal solution for this landlord and the entire transaction was processed quickly and professionally. The team at Landbay were great to work with and I look forward to completing more deals with them. We already have several more cases in the pipeline.”
