We offer a solid return on your investment because we only lend to the pick of the mortgage market, statistically the safest asset class in UK peer‐to‐peer lending.

Why Invest With Landbay?

Imagine applying for a mortgage and within 48 hours having your loan approved. Or, investing your money and begin earning interest within 24 hours, with returns 2-3 time higher than those on the high street. This is what finance technology (or FinTech) has created - it’s called peer-to-peer lending, and more specifically, it’s what Landbay does.

Peer-to-peer lending originated in the UK in 2005. Since then its growth has increased dramatically, resulting in a cumulative market value of £4.4bn by Q4 of 2015(1) and it’s predicted to grow a further £1-1.5bn in 2016(2). With the number of peer-to-peer lenders in the UK market exceeding 50, P2P lending is now considered one of the best alternative investment options in the market. 

What is Landbay?

In 2014, Landbay launched with the idea of anchoring peertopeer lending to a consistently performing, robust asset class – residential property. Through technology, our platform brings our investors and borrowers closer together to bring both parties a better deal.

We lend our investors' funds against prime buy-to-let (BTL) mortgages, statistically the safest asset class within the UK peer-to-peer market. Driven by increasing rental demand in the UK, the private rental sector is a resilient, secured lending market. In return, our investors can earn up to 4.5% pa* on their funds, by investing from as little as £100.

What makes Landbay different to other peer-to-peer lenders? 

Knowing the difference between peer-to-peer lenders, their underlying asset class, and the levels of risk and reward that come with each is key to ensuring you achieve your investment goals. Below are the benefits of investing with Landbay:

  • Market Resilience your investment is backed by the UK’s most resilient asset class, rental property. Rental demand in the UK has proven to ride above fluctuating house prices, and coupled with tangible bricks and mortar security, it's easy to see why tenanted residential homes make a solid investment opportunity.
  • Secured Lending – When you lend with Landbay your investment is always secured against a diversified portfolio of properties. We only lend mortgages against tenanted buy-to-let properties, so there is also the added security of rental income to cover a borrower’s loan repayments. 
  • Automatic diversification – We always diversify your investment by borrower, property type and geography to help protect your money from the effects of any one borrower missing a payment, defaulting, or if demand falls in a particular area. To date we have not had one late payment or default.
    • Easy investing – we believe that investing in property should be accessible to everyone, regardless of their income or position on the property ladder. At Landbay you can invest from as little as £100 and start earning interest within 24 hours of cleared funds, subject to mortgage investments being available.
      • Pushing transparency barriers – We believe in creating a more transparent financial services industry, and so we make information about investing with us readily available to you. You can find our full loan book as well as full statistics, including default and arrears data, on our website at all times. We have nothing to hide.
        • A fair deal for everyone – The margin that each peer-to-peer lender takes will differ between platforms. We are one of the few financial services businesses to disclose our margin on a loan-by-loan basis, because we think it’s important for you to see that everyone is getting a fair deal. 

        7 things to consider when selecting a peer-to-peer platform

        1. The asset class –  Research the underlying asset class of a peer-to-peer investment and specifically how that asset has performed through financial cycles is critical to fully understand the potential performance of your investment. This will help you weigh up the risk you are taking vs the financial reward.
        2. Underwriting – It’s crucial to understand how each platform tackles underwriting and the conditions they use to assess whether or not an applicant meets their borrower criteria. After all, your monthly interest is heavily reliant on a trustworthy borrower making their monthly loan repayments.  
        3. Loan period & type - Research the detail of the loan(s) you are investing in. For example; how long will it be invested for? What are your options if you want to withdraw your money and how quickly can you access it? 
        4. Diversification - With investing, the old saying ‘don’t put all your eggs in one basket’ rings true, every P2P lending platform approaches diversifying your investment differently, make sure you understand how your funds are managed once they are invested.
        5. Transparency of loan book – Check if a platform has opened up details of their loan book and provided loan repayment data. If they don't, it's important for you to question why.
        6. Reserve fund - The sole and exclusive purpose of a Reserve Fund is to compensate lenders should a borrower miss a payment, or if a loan falls into arrears. Check whether a peer-to-peer lending platform has an emergency fund. If so, how much of the loan book it covers and what are the terms for payments to be made from it?
        7. Stress testing – The results of a Stress Test will help a company plan for potential future economic scenarios and define what will happen to their loan book should the asset class see a downturn. A Stress Test should be carried out by an independent body and it should inform the size of any reserve fund. 

        Read more about these 7 points here

        Why invest in buy-to-let (BTL)?

        Buy-to-let mortgages are statistically the safest asset class in peer-to-peer lending, the performance of the private rental sector throughout financial cycles has demonstrated its resilience and attraction as an investment.

        During the 2008 Global Financial Crisis, the UK rental market rose above the fluctuation of residential house prices. Where house prices fell by 17.4%, rental properties remained resilient and repossession rates were negligible at 0.35% (Source: Council of Mortgage Lenders, 2008 & 2013)

        In addition, it is also a sector that continues to grow, with UK buy-to-let mortgage lending currently accounting for over £30 billion pa. This ensures that we can hand pick the best lending opportunities without having to increase the risk profile.

        You can find out more about how investing with Landbay works here: https://landbay.co.uk/how-it-works

        (1) http://www.altfi.com/article/1760_p2p_lending_the_best_investment_of_2016  
        (2) http://www.crowdfundinsider.com/2015/12/78925-bondmason-reports-p2p-lending-doubled-to-2-3bn-in-2015-offers-up-3-predictions-for-2016/
        Landbay is authorised and regulated by the Financial Conduct Authority (Firm no. 719626). Landbay is not covered by the Financial Services Compensation Scheme. Your capital is at risk.

        Risk-adjusted returns in peer-to-peer lending

        7 Things To Consider When Selecting A Peer-To-Peer Investment