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Landbay launches first peer-to-peer Tracker product

13th October 2014 Print

Recent entrant to the UK’s fast-growing peer-to-peer lending market - buy-to-let mortgage specialist Landbay - has announced the launch of two new P2P buy-to-let products.

Recent entrant to the UK’s fast-growing peer-to-peer lending market -- buy-to-let mortgage specialist Landbay -- today announces the launch of two new P2P buy-to-let products which will include the first ever peer-to-peer tracker loan, paying lenders the Bank of England Base Rate (BBR) plus 3%, so currently 3.5%. This 5 year product will give lenders the security and peace of mind of knowing that as interest rates rise, so will their returns.

Landbay is also launching another product to complete its new range: a Fixed Rate product currently paying lenders 4.2% for 3 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.

The two new options have been designed for UK savers frustrated with the derisory rates paid by banks on conventional savings accounts, including cash ISAs. All lending on Landbay is into 5 year buy-to-let mortgages offered to experienced buy-to-let landlords, secured on heavily-vetted UK residential property.

Landbay offers lenders the lowest risk P2P alternative by only lending to the most secure part of the UK residential buy-to-let market, at very sensible loan to value levels and with a range of safety measures to keep lenders’ risk to a minimum:

Lenders enjoy first tier security against UK residential properties, all vetted and valued by a RICS-qualified surveyor and then double checked by an independent panel

Lending is restricted to experienced, professional landlords sourced through UK’s leading buy-to-let mortgage brokers, including Mortgages for Business and the Buy-to-Let Business

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.”

For lenders, Landbay is democratising access to the buy-to-let arena via its minimum investment of just £100 – opening the door for a much wider cross section of the British public to enjoy attractive, low risk returns from the UK’s favourite and best known investment asset: residential property. 

Landbay is unique in the P2P lending arena; it is the only platform where lending is exclusively for buy-to-let mortgages on UK residential property, with all lenders enjoying the security of a first mortgage charge on the property and a range of additional safety measures. 

For those seeking a buy-to-let mortgage as part of a well-established property investment and rental business, Landbay offers a refreshing and rational alternative to dealing with banks or building societies. Rates are very competitive and the application and administration processes are much faster and more rational than banks and building societies.