Landbay Review

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By on 16 March, 2018 | Read more by this author

https://www.4thway.co.uk/?p=14133

I think a lot of amateurs like me can quickly see the appeal in Landbay, but here's the latest thinking on Landbay from one of our experts.

4thWay's Quick Expert Landbay Review

Strict lending criteria and low-risk BTL mortgages for lenders

Landbay has completed over £100 million in residential landlord mortgages since 2014.

Internally assessed by one of 4thWay's risk modellers, Landbay has good processes and a team with all the experience we would hope to see. Landbay has clear lines in the sand: both the average (<70%) and maximum (80%) loan size compared to the property price are satisfactory, and the average ( approx. 160%) and minimum (>125%) rent compared to mortgage payments is very reassuring.

Borrowers are mostly successful landlords. Recently Landbay opened up to first-time landlords in theory, but it has clearly demonstrated to 4thWay that it is very strict about approving them in practice.

Landbay's reserve fund is large when you consider the low inherent risks in secured residential buy-to-let mortgages. Even in a severe recession and horrendous property crash, we believe the risk of even small losses for most Landbay lenders is low.

Landbay* is highly transparent, giving us all the detailed information we need to use our assessment techniques. We have no recent management accounts. While we can assume it is still loss-making as it spends to expand, it appears investors in Landbay recently paid over £2 million for around a 20% share of the business. Landbay has also completed over £30 million in mortgages funded by institutions (e.g. banks), and millions more since 2014 in P2P loans.

From the end of 2017, Landbay has greatly boosted the number of mortgages that lenders diversify into, with lenders recently lending in an average of 16 loans when contributing to new money to a Landbay lending account, which is good for high-quality property loans. Lending regularly or over a longer period increases your diversification further.

Landbay's lending accounts are available as IFISAs.

Visit Landbay*.

For more quick expert reviews, visit our comparison tables.

The opinions expressed are those of the author and not held by 4thWay. 4thWay is not regulated by the ESMA or the FCA, and does not provide personalised advice. The material is for general information and education purposes only and not intended to incite you to lend.

Experts, journalists and bloggers who conduct research and write articles for 4thWay are subject to 4thWay's Editorial Code of Practice. For more, please see 4thWay's terms and conditions.

*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from Landbay and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
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