A loan of £175k at 74% LTV was offered to a successful property developer-cum-landlord who was looking to refinance in order to avoid a high reversion rate of 6.58% with his existing lender.
The deal at 5.12% fixed for three years, was completed in just under eight weeks. It was made available for a 2-bed terraced house on the South Coast that had been built by the developer in 2011.
Steve Olejnik, sales director at Mortgages for Business said:
“The property was owned by the client’s SPV limited company and as such finance options in the wider buy to let market were restricted. Landbay provided an ideal solution and the entire transaction was processed quickly and professionally. The team at Landbay were great to work with and I look forward to completing more deals with them. We already have several more cases in the pipeline.”
The success of the deal should make an enormous difference to brokers who are looking for credible alternatives to the traditional buy to let lenders for their clients. Landbay, which launched at the end of April is the only P2P (or crowdfunding) platform where lending is exclusively for buy to let mortgages on UK residential property, with all lenders enjoying the security of a first charge on the property.
John Goodall, CEO at Landbay said:
“It’s fantastic to get the first transaction under our belts and confirms that all processes are working well. It’s good to be working with a specialist like Mortgages for Business who have really helped to guide us through the initial administration including working with valuers and lawyers. The pipeline is growing nicely and we look forward completing more details very soon.”
