'More flexible' buy-to-let mortgages available from peer-to-peer lender

A new firm is offering what it says are more flexible buy-to-let loans, using crowdfunding techniques.

Landbay is a new lending platform that offers buy-to-let loans of between £50,000 and £500,000 against properties in England and Wales. It is unique in that it is a peer-to-peer system, meaning that loans are taken from a range of different investors rather than a single institution.

The platform claims to process all applications within 48 hours, and rates are available from 4.8 per cent. There is an application fee of £750 for standard buy-to-let loans, and £999 for HMOs, along with a product fee of 2 per cent for individual borrowers and 2.25 per cent for corporate borrowers.

Meanwhile prospective lenders can invest from just £100, and their investments will be diversified amongst multiple properties in whichever risk band they choose.

Announcing the launch of the platform, Landbay founder John Goodall said: “Landbay is an important new innovation that will open the door to a much broader cross-section of the public to the attractive returns available from Britain’s residential buy-to-let market, a sector that was worth £21 billion in new lending last year alone.”

Landbay was itself partly crowdfunded, raising its final equity finance round through Seedrs. You can read more about crowdfunding in our small business finance guide, or read about new crowdfunding regulations.