The secured p2p property lending platform has launched a new three-year mortgage to directly challenge the banks’ dominance over the £1.3 trillion mortgage market.
The middle-term mortgage will target consumers and investors that are disenchanted by the expense of short-term bridging loans and by the time it takes to repay traditional mortgages. The new product will offer mortgage borrowers a highly flexible, medium term solution, as well as providing investors with an interest rate of around 5-7% net p.a. The demand is clearly there for the middle-length loan. In a recent survey of its investors, LendInvest discovered that over a third were attracted by the prospect of a three-year loan.
“For too long high street banks have failed to provide flexible and medium terms loans to both investors and consumers.
“Our new 3 year loan, launched in response to interest from our own customer base, will help those looking for medium term loans whilst also proving strong returns to LendInvest’s investors’ money.”
The 3-year loan will be well suited to investors looking to buy a property, but also for those seeking an extended payback period due to tenancy issues or pending planning permission for renovation. LendInvest is also working on a secondary market for the platform, which will allow investors to liquidate an investment should they require the capital back before the three year term is up. The news of this 3-year loan, alongside the platform’s recently launched Tranche Loans, highlights LendInvest’s desire to offer optimal flexibility to both investors and borrowers alike.