Are you looking to expand your buy-to-let portfolio, but struggling to get funding from traditional lending institutions? With many traditional lenders imposing lending criteria that are inconsistent with the investment plans of today’s landlords, it’s no wonder that landlords are starting to look elsewhere for the credit to expand their property empires.
This need is being met by a new trend in buy to let finance – namely ‘peer-to-peer’ lending platforms.
The idea is a simple one – to match up borrowers with lenders whose desire for investment returns outstrip the current unimpressive savings rates.
Although these platforms have only been around for a short time, the high demand for credit, combined with savers desires to achieve better investment returns have led to a great deal of interest in this new investment model.
Many mainstream lending institutions can have inflexible rules on lending – such as limits on how many properties a landlord can borrow against or restrictions on certain types of investment property. This reluctance to lend against such properties does not necessarily mean they are a poor investment risk, which is why the peer-to-peer lending platforms are starting to get a foothold in this part of the finance market.
With demand for residential rental property continually increasing, such lending platforms could be a golden opportunity for those in the buy-to-let sector by providing would-be borrowers another option.
Such a service may well be of interest to some of our buy-to-let insurance clients who are keen to expand their portfolio but have been refused by traditional lenders. Click4quote.com provides a range of insurance policies for landlords with individual buy-to-let properties or with portfolios of properties. If you are adding to your portfolio, or have a number of properties that need insuring, why not ask us for a quote – just complete and return our portfolio quote request form