Property Presentation: Landbay
John Goodall, CEO & Co-founder of Landbay
In this presentation, Mr. Goodall provides an overview of Landbay’s business model:
- Landbay is a P2P lending platform focused solely on UK buy-to-let mortgages. Landbay considers itself one of the lower-risk P2P platforms given the nature of the buy-to-let asset class. For example, Landbay can become the receiver of rent in the event that a borrower ceases payments, Mr Goodall notes.
- Landbay offers two options to retail lenders: a fixed-rate product and a floating-rate product.
- Landbay loans against tenanted, rented properties in the UK. It started lending in July 2014 and has since completed £12.5 MM in loans with an average size of £200,000. Other key metrics: LTV of 66.5%; rental income-to-interest cost ratio of 167%.
- Landbay strives to provide transparency about its lending criteria and help its investors understand risk. It has published an independent stress test modeling potential losses in the event of a serious downturn. The stress test results, as well as Landbay’s loan book, are available on its website.