Landbay, a recent entrant to the peer-to-peer (p2p) lending market, has launched two new buy-to-let products.
These include the first ever peer-to-peer tracker loan, paying lenders the Bank of England Base Rate (BBR) plus 3%, so currently 3.5%.
Landbay is also launching a fixed rate product, currently paying lenders 4.2% for three years, reverting to the Tracker rate for the remaining two years.
With both the tracker and fixed rate products, lenders can access their money at any time before the full term is up by selling on their loans to other Landbay customers, through the website and at no extra cost.
All lending on Landbay is into five year buy-to-let mortgages offered to experienced buy-to-let landlords, sourced through key intermediaries, secured on “heavily-vetted” UK residential property.
Rental income from the property must exceed 125% of the monthly repayments required for the mortgage.
Lending on the Tracker and Fixed Rate products is restricted to a maximum of 72% loan to value, so should a landlord default and the property have to be sold, no loss will be incurred by lenders unless the property had to be sold at a loss of more than 28%.
John Goodall, cofounder and CEO of Landbay, said: “We are very pleased to be offering the first peer-to-peer tracker product, especially as increases in interest rates look ever more likely and potentially imminent. With banks continuing to pay very low and even declining rates to their savers, the launch of our new Tracker product is very timely and great news for Britain’s long suffering savers.
“These new Landbay products offer lenders two distinct options to meet their specific needs and preferences, and adds unique new power to the rapidly growing peer-to-peer finance marketplace in the UK.”