One of the top questions on the mind of shrewd investors researching P2P platforms, is if the platform has a secondary market, and crucially, how liquid that market is.
As of 26 July 2024 more than £6.0 million has been sold and bought on LandlordInvest’s secondary market, demonstrating the strength of the market that exists for platform investors wishing to access their capital prior to loan maturity.
Following the interest in last week’s post about the speed with which primary listings are funded, this seems like a good time to perform the same analysis on the secondary market.
Time taken for a secondary market listing to be purchased in full*
| Purchased in less than | Percentage of listings |
|---|---|
| 5 minutes | 28.3% |
| 10 minutes | 34.5% |
| 15 minutes | 37.9% |
| 30 minutes | 43.6% |
| 1 hour | 50.6% |
* Sellers have the option to allow buyers to purchase their listing in increments of £100, when this feature has been used we are using the date & time at which the full listing was sold (whether in one or multiple purchases).
The popularity of the market shows no sign of waning, with 56.0% of listings being sold within 1 hour in 2023 and 64.3% so far in 2024.
The market is widely used and to date 330 unique accounts have made a sale on the secondary market and 405 unique accounts have made a purchase.
More than 10,000 unique transactions have taken place since we launched our secondary market in May 2017.
About the secondary market
As well as being one of, if not the, most liquid secondary market in the UK’s P2P industry, it may also be the most fully featured. Lenders can offer all or part of an existing investment for sale, and have the choice to restrict any purchase request to the full amount or to allow multiple partial sales, a feature that much bigger platforms struggle with. They may also offer their listing at a discount if they so choose.
There are no limits to the number of times a lender can buy into or sell from a given loan, and daily interest is split between the buyers and sellers at the point the transaction is processed.
Potential buyers have the option to receive instant emails about all new secondary market listings, or choose an hourly or daily digest.
To find out more about our liquid secondary market, open a free account here and access our loan marketplace including the primary and secondary markets, and a full history of all active and repaid loans.
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.
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