FinTech: Across The Pond, Property Finance Fintechs Report Record Business
Property finance platforms LendInvest and EstateGuru report robust loan offtake.
LendInvest, a leading property finance platform that offers short-term, development and buy-to-let mortgages to intermediaries, landlords, and developers across the UK reported a record quarter in Q3 for property bridge loan applications. EstateGuru, a crowdfunding marketplace for property-backed loans, reported record loan volumes during August and September. (CROWDFUND INSIDER)
Signed bridge loan applications during the third quarter of 2020 surged 65% year-on-year compared to the corresponding period in 2019. Between the second and third quarters, bridging applications broke all previous records with a 58% jump.
Interestingly, the Covid 19 pandemic does not appear to have made a dent in the company’s business despite operational challenges.
Earlier this month, LendInvest’s head of development finance, Steve Larkin, said there was still a housing shortage and a demand for high-quality housing after months in lockdown. He anticipated that the growth of work-at-home could drive buyers to different types of housing. These would offer more space even though they may be remote.
“With new systems and processes constantly being reviewed to manage and improve turnaround times, I am confident that we will be able to meet the increasing demand for property finance over the next couple of months while maintaining the high service levels we currently are,” said Leanne Smith, Sales Director at LendInvest.
“Call volumes and new applications are at the highest we’ve ever experienced,” Smith added.
Justin Trowse, Director for Bridging, said that the firm’s pipeline was a record to date, and that completion levels were increasing month on month.
To date, LendInvest has loaned over £3 billion of short-term, development, and buy to let mortgages.
EstateGuru, an Estonia-based fintech with a presence in several European countries, is a crowdfunding marketplace for property loans. The firm aims to bring the benefits of alternative financing to a broader audience.
The fintech reported that during August and September its loan volumes exceeded € 10 million each month. Since 2014 the platform has clinched a record 1 million investments.
The company attributed the growth in business to a strong and fast recovery from the Covid 19 crisis.
“Our property loan amounts increased 24% compared to the same period last year and our revenues increased 46%,” said Marek Pärtel, Co-founder and CEO at EstateGuru. “I can say today that EstateGuru has come out of the crisis much stronger than we entered it. We also saw a solid inflow of new investors, a 52% increase compared to Q3 2019, but most importantly, our technology and digitalization have made it possible to invest in property for anyone, anywhere in the world.”
Latest Alternative Investment News
Home management platform Thumbtack enables its millions of customers to find and hire small businesses and local professionals for virtually any home-related task. It announced Tuesday that, “on the heels…
FinTech: 10X, The Fintech Founded By Ex-Barclays Chief Antony Jenkins, Rakes In $187M To Scale Massively
Founded in 2016 by Antony Jenkins, former CEO of Barclays (LON: BARC), fintech 10X Future Technologies has raised $187 million from a clutch of bulge bracket investors. The firm’s oversubscribed…
Artificial Intelligence: LVMH Ties With Google Cloud For AI-Powered Experiences At Maisons Luxury Brands
LVMH (EPA: MC) announced today its tie-up with Google (NASDAQ: GOOGL) Cloud for the development of cloud-based AI solutions. LVMH and Google Cloud will work together and deploy the latter’s…
HSBC (NYSE: HSBC) has created HSBC Alternatives, an umbrella unit to house its disparate alternatives assets. It will be formed from multi-manager Hedge Fund and Private Market teams, as well…