New P2P Lender Up and Running

By AltFi on Thursday 10 July 2014

Alternative Lending

Newly launched P2P lender Landbay has now completed its first deal via the platform.

Mortgages for Business has brokered the first buy to let remortgage for Landbay. The initial loan of £175,000 at 74% LTV was made to a successful property developer-turned-landlord who was looking to refinance in order to avoid a high reversion rate of 6.58% with his existing lender. The property in question is a 2-bed terraced house on the South Coast. Participants in the loan will reap an interest rate of 5.12% fixed per annum for three years.

John Goodall, CEO at Landbay, commented:

“It’s fantastic to get the first transaction under our belts and confirms that all processes are working well. It’s good to be working with a specialist like Mortgages for Business who have really helped to guide us through the initial administration including working with valuers and lawyers. The pipeline is growing nicely and we look forward completing more details very soon.”

You can view a basic breakdown of the deal below:

Property value: £235k

Loan amount: £175k

LTV: 74%

Rate: 5.12% fixed for 3 years reverting to 4.26% + LIBOR

Term: 5 years interest only

Monthly repayments: £763.32

Lender arrangement fee: 2.25% added to loan

Valuation & legal fees: £750

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