It often feels like that no sooner has a platform loan been made available for investment, that it is fully funded and we’re already making preparations for completion. In today’s blog post we analyse how often that really is the case.
In the very early days of LandlordInvest, we standardised publishing a loan 24 hours before investment commitments could be made, long before it became regular practice on many other platforms. This offers the dual benefits of giving potential investors time to digest the loan information and decide if they want to invest, and allowing time for funds to be deposited into accounts if required.
Soon after that, and in response to consultation with platform lenders, we began adding a further period where investment commitments are limited, usually to £1,000 per account for 24 hours. This prevents investors missing out on a loan due to a handful of very large investments being made immediately.
For the purposes of the calculations in this post, the date a platform loan is considered open is the latest date and time of: publication, investments being allowed (if set), or investments being unlimited (if set).
All loans
| Funded in less than | Percentage of loans |
|---|---|
| 5 minutes | 38.6% |
| 10 minutes | 42.0% |
| 15 minutes | 44.3% |
| 30 minutes | 46.6% |
| 1 hour | 51.1% |
The data confirms what we have anecdotally experienced in the office. Almost 40% of all loans have been funded in under 5 minutes and over half within an hour.
The effect of this rush to avoid missing out has felt more pronounced in recent years so we will also compare the difference in loans funded in the last 3 years (36 months to 17 July 2024) with loans funded before that.
Loans funded more than 3 years ago
| Funded in less than | Percentage of loans |
|---|---|
| 5 minutes | 2.7% |
| 10 minutes | 5.4% |
| 15 minutes | 5.4% |
| 30 minutes | 5.4% |
| 1 hour | 8.1% |
Loans funded in the last 3 years
| Funded in less than | Percentage of loans |
|---|---|
| 5 minutes | 55.1% |
| 10 minutes | 59.2% |
| 15 minutes | 63.3% |
| 30 minutes | 67.3% |
| 1 hour | 73.5% |
As you can see, the percentage of loans funded in under 5 minutes increases from 2.7% to 55.1%.
LandlordInvest has a more established brand and more active investor accounts now than ever before, so it is perhaps unsurprising that there is a higher demand for platform loans.
* The statistics in this post have been drawn from a sample of platform loans where the required data was captured. The sample represents 75.2% of all completed platform loans for the period 2017-2024.
Our blogs are for information purposes only. This content is not financial, legal or tax advice. Should you require any advice in relation to the earnings you make from LandlordInvest we recommend seeking independent professional advice. Links to other sites are provided for your convenience but LandlordInvest accepts no responsibility or liability for the content of those sites or of any external site. The information in this blog is correct at the time of posting.
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LandlordInvest Limited is authorised and regulated by the Financial Conduct Authority (FCA) (FRN 660926). LandlordInvest Limited is not covered by the Financial Services Compensation Scheme (FSCS).
Loans provided to borrowers through LandlordInvest are provided solely for business purposes. Loans are therefore not regulated by the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974. You should seek independent legal advice if you are in any doubt as to the consequences of the loan not being a regulated agreement under those Acts.
LandlordInvest Limited (Company No. 09245725), registered office 330 High Holborn, London, WC2A 1HL
