Unlike other peer‐to‐peer platforms we do not offer unsecured consumer loans, small business loans or offer higher‐risk mortgages for property development, bridging or commercial real estate purposes. It’s a conservative approach to lending.
A Landbay investment is secured by British property, more specifically buy‐to‐let property. The rental market in the UK has shown resilience and strength over time and through financial cycles, and this is a key reason why we chose rental property as the underlying asset class. Statistically it’s the lowest risk asset class available in UK peer‐to‐peer investments.
Whilst fluctuations in property prices are unlikely to impact your investment directly, we believe the biggest risk to your return is the borrower’s ability to make their loan repayments, and rental demand can have an impact upon this. Our underwriting and investment diversification processes are key in our approach to protecting your investment against market risk.
We conduct comprehensive identity, fraud and credit checks as well as performing due diligence on the underlying property, which includes an independent professional valuation. We assess the Borrower’s credit history, level of assets and liabilities. We also perform detailed analysis of the property’s rental income to assess the affordability of the loan. We only consider mortgage applications recommended to us by our network of leading FCA‐regulated accredited mortgage broker partners, they help us filter out unsuitable applications, leaving only the best applicants and the most suitable opportunities for us to consider. Our borrowers are experienced and creditworthy landlords. For more information, see our full underwriting criteria.
We automatically diversify your investment across multiple loans, this adds an extra layer of protection to your investment, as it ensures you are not solely reliant on one loan, and therefore the rental demand on one property.