Frequently asked questions

We've put together a list of frequently asked questions, along with answers to help you make the most out of your LandlordInvest account.

General FAQ

Who is LandlordInvest?

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.

For more information please see the invest and borrow page.

What does LandlordInvest do?

LandlordInvest is a peer-to-peer platform that does the following:

  • Performs introductory services on behalf of borrowers and lender, i.e. by operating the platform;
  • Providing a stream-lined process for entering into loans including the development of standard form loan agreements, and;
  • Facilitating the payment and collection of sums due under or in connection with loans including taking certain actions on behalf of lenders upon a borrower's default.

What happens if LandlordInvest goes out of business?

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.

How can I contact you?

You can contact us via email or telephone. Please see our full contact details on the Contact us page.

Investor FAQ

How do I become a lender?

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.

How do I invest?

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.

How can I transfer funds into my LandlordInvest account?

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.

How long will it take for the funds to reach my LandlordInvest account?

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).

If requested to send in documents verifying my identity, what do I need to send and where do I send them to?

In order 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

  • Utility Bill
  • Tax Statement (issued from a local or national government)
  • Bank Statement

B. Photo Identification: a photocopy of any of the following documents

  • Valid Passport
  • Valid Driver's Licence

Each of the two photocopies will need to be certified by an independent professional that

  • is not a member of your family, and
  • does not live at the same address as you, and
  • you are not in a relationship with.

In order to certify the documents, the independent professional will have to:

  • Write "Certified to be a true copy of the original seen by me" on the document;
  • Sign and date the document,
  • Print their name under the signature, and
  • Add their occupation, address and telephone number.

Please email all documents to [email protected]. Please feel free to contact us if you have any other questions.

How is interest paid?

Borrowers are required to make interest payment on a monthly basis. We will pay interest into your account once we have received the interest payment from the borrower and deducted the servicing fee. You may chose if you wish to re-invest the interest payment or withdraw it to your bank account.

Is the interest that I earn net of tax?

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

When is the capital (principal) repaid?

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

How is the risk rating set?

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:

  • Borrower’s income and expense
  • Borrower’s financial standing (asset and liabilities)
  • Borrower’s credit history
  • Borrower’s possibility to service a loan
  • Loan purpose
  • Security (property)
  • Projected income and expenses from the property
  • County Court Judgements and bankruptcies (current and historical)

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.

What happens if a borrower misses an interest payment?

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.

What happens if a borrower defaults?

We will enforce security, by selling the property.

What security do you ask from a borrower?

We will always ask a borrower to provide a first or second charge over a property and occasionally a personal guarantee.

What fees do you charge?

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.

How do I submit a complaint?

You can find instruction on how to submit a complaint on this page

Can I set up an account as an overseas resident?

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 current UK regulations if you wish to open an account with us.

We would need the following documents from you to verify your identity:

  • Passport or Driving Licence with a photo
  • Bank statement or a credit card statement

What does it mean when a loan is pending underwriting?

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:

  1. The borrower needs to raise funds quickly, which is common with bridging loans, and there is little time to wait for a formal valuation to be undertaken. Valuation is undertaken during the funding process or immediately following successful funding, or
  2. To save the borrower costs in the event that the loan will not be fully funded, as raising funds through our lending platform does not guarantee that a loan will be fully funded.

Until a formal valuation is undertaken, external estimated values will be used, such as estate agent appraisals and a formal valuation is undertaken if the loan becomes fully funded. If the value of the valuation falls below the specified value range as set out on the Loan Information page, then the borrower will not get the loan and all funds will be immediately returned to investors.

What is the secondary market?

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.

How do I sell my loan or loan parts?

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.

Which loan or loan parts are not eligible to be sold on the secondary market?

Some loan or loan parts may not be listed on the secondary market. These are loan or loan parts that are either in:

  • Arrears (meaning a borrower has missed one or several interest payments or only made a partial interest payment);
  • Default; or
  • Only one interest payment remaining.

Can I cancel my secondary market listing?

Yes, you may at any time cancel your secondary market listing by going 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.

Is there a fee to sell a loan or loan part on the secondary market?

Yes, sellers are charged an administration fee of 0.5% on the loan or loan part amount that is sold. As an example, if you sell a loan or loan part for £1,000 on the secondary market, the sale fee will be £5 (£1,000*0.5%), automatically deducted from the sale proceeds.

We may at our absolute discretion waive the Secondary market sale fee in part or in whole as part of a promotion or for any other reason.

How do I buy a loan or loan part on the secondary market?

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.

What is the sale price on the secondary market?

The sale price for a secondary market listing is the seller’s original investment amount into the relevant loan or loan part. As such, loan or loan parts can only be sold at par and not with at any discount or premium.

How is interest treated on a secondary market sale?

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.

When are secondary market transactions processed?

Secondary market listings will only be processed between the hours of 9.30am and 5pm, Monday to Friday.

Borrower FAQ

Who can apply for a loan?

Our basic borrower criteria are:

  • Over the age of 21
  • UK resident or UK company
  • Have a UK bank account
  • Property located in England or Wales

Register to become a borrower here.

How do I become a borrower?

You can become a borrower by registering a borrower account here. You can submit a loan application after you have registered your account.

What are your borrower criteria?

You can find our borrower criteria here.

How long does it take to get a loan?

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.

What interest do I pay?

The rate of interest you would 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 itself, the borrower’s background and circumstances.

What fees do you charge?

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.

Are there any additional charges that could apply to my loan?

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.

Can I prepay my loan?

Yes, you may prepay your loan without any prepayment penalties.

Connect with us