The Reserve Fund

In addition to holding first‐charge mortgages on every property we lend to, we retain a proportion of our borrower platform and product fees to offset potential future arrears and defaults, this is our Reserve Fund.

Our level of provisioning is based on comprehensive, independent Stress Testing of our mortgages and current loan book conducted by MIAC, an independent global mortgage valuation and analytics company.

If a borrower defaults on their mortgage and there is a shortfall after selling the property, less all related enforcement costs, a claim will be made on the Reserve Fund for any remaining principal and interest due.

Landbay will also use the Reserve Fund to cover missed mortgage interest payments as and when it deems appropriate.

Landbay operates its Reserve Fund on a discretionary basis and does not guarantee that a claim will be approved, nor that there will be sufficient funds available at any given time.

Reserve Fund

Size of Fund
as a % of outstanding peer-to-peer loans


Anticipated defaults


Actual defaults since 2014