LandlordInvest is a UK based peer-to-peer (P2P) platform where people and companies lend directly to landlords based in the UK. All loans are secured by British property to avoid the risks associated with unsecured lending.
Our platform has two products: buy-to-let mortgages (BTL) and bridge loans. All borrowers are subject to comprehensive due diligence and loan underwriting process prior to making a loan available to lenders. Indeed, we use the same underwriting process as the high street banks and work with leading credit referencing agencies, including Experian and Equifax.
We manage borrower’s interest payments and also act on behalf of lenders in case of a borrower default.
We are able to offer investors’ high returns and borrowers more competitive rates than what is available from banks as we remove the middle men and are more efficient than the banks.
LandlordInvest is a peer-to-peer platform that does the following:
We have established comprehensive arrangements to ensure that all loan agreements continue to be serviced if we were to go out of business. All investors’ unlent funds are kept in a segregated bank account with a Financial Services Compensation Scheme (FSCS) protected high street bank. FSCS covers deposits up to £85,000 in case of the bank would become insolvent.
You can contact us via email or telephone. Please see our full contact details on the Contact us page.
You have to be over the age of 18 to become a lender.
You have to register a lending account to be able to lend. We will also need to confirm your identity. We can usually do this automatically, but sometimes we will have to confirm details with you directly.
Please click here to register as a lender.
In line with Financial Conduct Authority (FCA) rules, you need to pass an Appropriateness Test to be able to invest through peer-to-peer lending platforms, including LandlordInvest.
The test is designed to demonstrate your knowledge and experience of investing in peer-to-peer lending.
The test consists of 6 questions with three answers of which one answer is correct. All questions must be answered correctly to pass the test. You can take the test as many times as you want until you pass it, but you will have to wait for two hours to take the test again if you are do not answer all questions correctly.
Please keep in mind that you will not be able to deposit any funds or invest until you have passed the test.
Registered and verified lenders can invest by browsing through available loans on the loan marketplace. The loan marketplace lists all loans that are available for funding. Simply chose a loan, commit the desired amount and press the "Invest" button. At this stage, your investment amount is only reserved and only deducted once a loan is fully funded. Your reserved amount will be returned to your account if a loan does not achieve the required funding on the specified date.
To credit your account please send funds to our segregated client account by bank transfer.
Please note that transfers must be made from an account in your name or a joint account, but the transfer must state your name and not your partner’s name.
To make a bank transfer please login to your LandlordInvest account to retrieve your unique reference number which you will need to quote to transfer funds.
If we receive your funds before 1pm on a business day, they will be credited to your account within three hours. If we receive your funds after 1pm, they will be credited to your account by noon the next business day.
We will send you an email to notify you and you will see the balance reflected in your LandlordInvest account. Please give us a call if you do not see your funds credited into your LandlordInvest account and we will be happy to check with our bank.
We will return any funds that we are not able to verify (no name or account details provided on credit).
To verify your details and allow us to process your account we are required to see certain original documents.
Could you please email one document from List A and another document from List B:
A. Proof of Address a photocopy of any of the following dated within the last three months*
B. Photo Identification: a photocopy of any of the following documents
Each of the two photocopies will need to be certified by an independent professional that
In order to certify the documents, the independent professional will have to:
Please email all documents to email@example.com. Please feel free to contact us if you have any other questions.
Borrowers are required to make interest payments on a monthly basis. Interest can be serviced, retained or a mix of the two. If interest is serviced, we will pay interest into your account once we have received the interest payment from the borrower and deducted the servicing fee. If interest is retained, we will pay interest into your account on the interest due date.
A serviced interest loan means that the borrower is required to make interest payment each month.
A loan with retained interest means that the borrower is not required to make any monthly interest payments. Instead, interest is added to the loan amount at the outset of the loan and paid out to investors at the interest due date by LandlordInvest.
In some cases the retained interest is the full interest amount due over the entire loan term, in others it is part of the interest due throughout the loan term. In the case of the latter, retained interest will be paid to investors until it is exhausted and then the borrower will service the interest.
No. The interest you earn is gross of tax. You are responsible for your own tax affairs. HMRC has published a guidance that you can find here https://www.gov.uk/guidance/peer-to-peer-lending
Enhanced rate is the rate that an investor may earn from a loan if the loan commitment meets the minimum commitment amount set out in the Enhanced rates table, available in the Enhanced rate tab, for the relevant loan.
The purpose of enhanced rates is to enable investors to make larger loan commitments to complete the loan funding process quicker.
The enhanced rates are compensated by reducing the borrower servicing fee due to LandlordInvest from this loan.
Enhanced rates are only available to the investor that made the original commitment and are not transferred to any other investor through a secondary market sale.
Capital is repaid on the agreed loan maturity date. You can chose to re-invest the capital payment interest or withdraw it to your bank account.
We may, in certain circumstances and at our sole discretion, extend a loan where we believe it is in the best interest of the borrower(s) and lenders in that loan.
Common reasons to extend a loan is that a refinancing is taking longer time than expected or delays with obtaining planning permission.
Lenders who invested into an extended loan are notified when the loan is extended.
A second charge loan is secured against a property that already has a loan outstanding (a first charge). Furthermore, it is riskier than a first charge loan as the first charge lender gets repaid before the second charge is repaid. Due to the higher risk, second charge loans often carry higher interest rates than first charge loans.
If a property is worth £100,000 and there is a first charge mortgage of £50,000, the borrowing is 50% of the value of the property – that is 50% LTV.
If in addition to first charge mortgage, there is a second charge loan of £20,000 then the total borrowing against the property is £70,000 which represents 70% of its value. So, the total LTV for the property is 70% LTV.
With a second charge loan, the LTV is even more important. Because the first charge lender is always repaid first, second charge lenders are taking a greater risk that they might not be repaid if the property value comes down or the amount of either the first charge or second charge loans increase.
This explains why second charge loans carry higher interest rates if the mortgage requires them to lend a higher percentage of the value (lend to a higher LTV).
Our risk rating are based on a number of factors including data sourced from leading credit agencies, data suppliers and financial information the borrowers supplies to us.
Many lenders use this data in their decisions on whether to lend to borrowers.
There are many factors taken into account when assigning a risk rating, including:
All borrowers are carefully reviewed and assed before they are allowed to list loan requests on the website. Only borrowers that we determine to be creditworthy are allowed to borrow through us.
The risk ratings range from A to D, where A is lowest risk. Please see the How it works page for more information on how our risk rating is set.
If a borrower misses a payment we will try to work out a payment plan with the borrower to ensure that the borrower meets the missed payment and keep up with all future interest payments. Failing this, we will enforce the borrower’s security to satisfy any unpaid interest and capital.
We will enforce security, by selling the property.
We will always ask a borrower to provide a first or second charge over a property and occasionally a personal guarantee.
We do not charge you any fee on your lending. Nor do we charge any fee on any uninvested funds kept in your LandlordInvest account.
To cover our costs of operating the platform, we charge the borrowers a servicing fee of up to 5% of the loan amount. The fee is deducted automatically on a monthly basis when a borrower makes an interest payment.
You can find instruction on how to submit a complaint on this page
Yes, depending on which country you reside in or which citizenship you hold. Please contact us directly to verify if you may be eligible to open an account with us. You may find our contact details here.
In any event, we have to verify your identity pursuant to UK regulations if you wish to open an account with us.
We would need the following documents from you to verify your identity:
It means that a loan that is available for investment, and if it is fully funded, it is subject to a final assessment prior to funds being released to the borrower.
This is done mainly for two reasons:
Until a formal valuation is undertaken, external estimated values will be used, such as estate agent appraisals, and will be the initial value displayed on the Loan Information page. If the value of the formal valuation falls below the initial value range, then the borrower will not get the loan and all funds will be immediately returned to investors.
In order to allow as many investors as possible to commit in a loan that is expected to be fully funded quickly, a commitment restriction may be applied by LandlordInvest. This means that each account is limited to a certain maximum commitment amount for a limited time period and as set out on the relevant loan listing. If the loan is not fully funded within that time period, investors may increase their commitment.
Each loan that you have invested in is assigned one of four loan statuses and which mean the following:
Each time there is a change in the loan’s status an update will be posted under the loan’s update tab setting out the reason(s) for the status change.
The secondary market is a marketplace that allows lenders to offer their loan or loan parts for sale to other lenders wishing to purchase them.
However, please keep in mind that only certain loan or loan parts may be made available for sale and that there is no guarantee that there will be a buyer for a listed loan or loan part.
To sell your loan or loan parts you must list them on the secondary market. To list a loan or loan part, go to your “My investments” tab located in your account and click the “Sell” button to add the loan or loan part to the secondary market. The minimum amount that you may list for sale is £100.
Your loan or loan part will be listed for a period of 14 days, starting from the time that you list the loan or loan part.
Other lenders may submit a bid to purchase your loan or loan part, and an admin must approve each bid before the sale is completed.
Please note that the secondary market does not provide a guarantee that loan or parts will be sold as it depends if there are other lenders that wish to purchase the relevant loan or loan part.
Some loan or loan parts may not be listed on the secondary market. These are loan or loan parts that are either:
Yes, you may at any time cancel your secondary market listing by going to your “My investments” tab, select the loan or loan part that has been listed for sale by clicking “Sell”, and then click the “Remove” button to remove the listing.
Yes, sellers are charged an administration fee of 0.50% on the sale price of the loan or loan part amount that is sold (the Secondary market sale fee). As an example, if you sell a loan or loan part for £1,000 on the secondary market, the sale fee will be £5.00 (£1,000 * 0.50%), deducted from the sale proceeds.
To buy a loan or loan part available for sale on the secondary market, go to the “secondary market” on the loan marketplace.
Select the loan or loan part listed for sale and press the “Buy” button.
Your bid will be sent to an administrator that will review the bid and either approve or decline it. Whilst the bid is being reviewed by the administrator, the listing will temporarily be hidden on the secondary market.
If the administrator approves the bid, you will be notified via email and your records will be updated showing the purchased loan or loan part.
Investors wishing to sell a loan or loan part on the secondary market have the option to sell either at par (the amount that the borrower is due to repay at the loan maturity date) or apply a discount of up to 20%.
As an example, if you sell a loan or loan part amount of £1,000 on the secondary market at a 5% discount, it will be made available to buyers on the secondary market for £950 (£1,000 * 5%) and you will make a £50 loss on your loan investment if sale goes through. You will keep all interest earned from the loan until the day of the sale.
Note that the example is excluding the Secondary market sale fee, which will be 0.50% on the discounted loan sale amount.
If a loan is listed at a discount, this can be seen on the secondary market under the “Discount” column and is also reflected in the “Sale Price”. You can purchase these loans as any other loans listed on the Secondary Market. The difference to a loan listed at par is that you will have a lower sale price (you pay less) compared to the loan investment that you will hold in the loan.
As an example, if a loan amount of £1,000 is listed with a sale price of £900, this means you will pay £900 for a £1,000 investment in a loan and as such are due to receive £1,000 back from the loan (not including any interest due).
While gains or losses incurred from buying and selling loan or loan parts at discount or par on the Secondary Market could be subject to tax, LandlordInvest is unable to provide specific advice or information about tax.
You should seek independent tax advice or speak with HMRC for more details on your specific circumstances.
For general tax enquiries, you can reach HMRC on 0300 200 3300 or visit GOV.UK.
When a secondary market sale occurs prior to a scheduled interest payment, the seller will receive the daily accrued interest until the day that sale is completed, payable to the seller upon the next scheduled interest payment for the relevant loan. The buyer will receive accrued interest from the day after the purchase is completed.
Secondary market listings will only be processed between the hours of 9.30am and 5pm, Monday to Friday and 12am to 4pm Saturday.
We may at our sole discretion suspend a loan from the secondary market when we receive, or become aware of, information which we consider could be material and which we think could significantly impact upon a lender’s decision to purchase the relevant loan or loan part on the secondary market.
If a loan is suspended from the secondary market, we will post a loan update on the lending platform setting out the situation and the reason(s) for the suspension.
If you no longer have access to the device on which you set up Two Factor authentication, you will not be able to login to LandlordInvest.
If you chose to use the Authy app and enabled backups, install the app again on a new device and follow it's process for recovering a lost account. If you used Google Authenticator, there is no recovery process.
In the event you cannot regain access to your device, or complete a recovery process, please contact us.
Two factor authentication protects your account by requiring an additional code from a mobile app when you login.
You download an authenticator app such as Authy or Google Authenticator and connect it with your LandlordInvest account by scanning an on-screen QR code picture.
Once connected, LandlordInvest will ask you to enter a temporary code from the app when you login.
App Store Links
Our basic borrower criteria are:
Register to become a borrower here.
You can become a borrower by registering a borrower account here. You can submit a loan application after you have registered your account.
We issue a mortgage offer letter within 48 hours after receiving fully completed loan application, subject to that you meet our borrower criteria and credit checks. A loan is usually funded 2-3 weeks after a mortgage offer letter has been issued.
The interest rate you pay is loan specific and will depend on factors such as the LTV ratio, the geographic location of the property held as security, the type of property, the borrower’s background and circumstances.
We charge an arrangement fee of up to 2.5% for buy-to-let mortgages and bridging loans. You may also need to cover any valuation and legal fees, and an annual servicing fee of 1.0%. All fees are subject to change and according to our agreement with you.
If borrowers are late in their repayments, we may apply an administration fee and other third party fees as specified in our Terms and Conditions.
Yes, you may prepay your loan without any prepayment penalties. However, please keep in mind that you will need to pay the minimum interest payable (if any) as set out in the Loan Facility Agreement.