Property Presentation: LendInvest
Christian Faes, CEO & Co-founder, LendInvest
Mr. Faes makes several observations about the UK mortgage market and discusses LendInvest’s business:
- As a £1.2 trillion market that is “entirely offline,” the UK mortgage market is the “main game in lending”, Mr. Faes notes. It is also “ripe for disruption” given the “poor consumer experience” -- the average UK mortgage takes 3 months to process.
- Founded in 2013, LendInvest is a leader in bridge finance, which focuses on short-term mortgage lending. This area of the mortgage market is worth £3-4 billion per year.
- Peer-to-peer investors make up 25-30% of LendInvest’s funding base.
- LendInvest’s average loan size is £630,000; the average loan term is 6-7 months; and the average LTV is 65%. Borrowers comprise property entrepreneurs (experienced landlords developers).
- In 2015, LendInvest has funded 700+ properties. The company is profitable with £15MM of revenues and £3.1MM profit in the last financial year. Peer-to-peer investors make up 25-30% of LendInvest’s funding base.
- Going forward, LendInvest is focused on evolving its technology;, bringing the whole process of getting a mortgage online; and taking its model into the broader mortgage market.
- The company recently launched a 3-year buy-to-let product and plans on taking its lending into the broader mortgage market.