Landbay pulls out of retail P2P lending market
The P2P firm which originally used clients’ money to lend as mortgages to seasoned buy-to-let landlords, has closed its retail investment arm as it focuses on the institutional side.
It said all existing retail investors have had their funds returned, including interest and as it maintained a 0% default rate, investors have earned the expected returns.
The move comes as the buy-to-let mortgage lender said institutional funding now accounts for the majority of business.
John Goodall, founder and CEO of Landbay said: “Landbay’s future is incredibly exciting as we see opportunities to grow with increased interest from our existing and new institutional investors. Today’s announcement means that as a business we can devote even more time to lending – supporting the UK’s vibrant and vital private rental sector.
“Having said that, this is not a decision we have taken lightly. The retail business has been instrumental in our journey as a company, and we are grateful to investors for putting their trust in us.
“This decision comes from a position of growth and success, and we will continue to invest in our people, technology, and brand to build a successful business of scale.”