Landbay Review

Landbay Review (UK Lender) 

(4.5 / 5)

– Updated September 2018

Read my 100% unbiased Landbay review here. Based on my own investing experience. Highlighting the positives and negatives of investing with one of the UK’s most popular and safest Peer to Peer lenders.

Landbay is a medium size Peer to Peer lender providing loans to  buy to let landlords with properties that have low loan to values (LTV less than 71% ). Rental incomes cover a minimum of 125% of the mortgage payment.

Landbay offer lower returns (3.18% – 3.54% – Sept 2018) compared to some other lenders. However with the safety of secured income property, and a provision fund that provides another layer or protection to lenders.  Landbay is about as close to a bank as you can get.  Although they are not a bank, and as with any investment, remember your capital is at risk.

Obvious Investor Easy-Info Table

Overall Rating*: (4.5 / 5)
Who can invest:
Estimated Return:3.18% to 3.58% depending on account.
My Actual Return:3.49%
Risk Rating*:2/10 - Low   
Early Exit:Yes. Under normal market conditions.
0.20% fee plus difference on fixed rate account.
No fee on tracker account.
Min. Investment:£100 first deposit on standard accounts.
£5000 for ISA account.
Auto Invest:Yes
Manual Invest:No
Lending To:Borrowers
Loan Security:Yes: on property.
Provision Fund:Yes
Time to Invest:Medium.
Can take a few days depending on loan availability
Time to Mange:None (auto-invest)
Lender Fees:No
Amount Lent:£168m +
Number of Investors:Not published
Loan/Dflt Stats:Click Here!
Regulated:Yes: FCA
Location:HQ - London, UK.   
Launched:April 2014
Website:https://landbay.co.uk/
IFISA/IRA:Yes: IFISA
Cashback**:Yes! £50 Cashback! Click here for further information.
How to Sign Up**:Sign Up Here!

* My opinions on ratings and risk rating factors refer to my personal experiences with the lender. Plus factual data such as interest rates, loan types, security, platform history, default numbers etc.

**Please read our referral policy for more information on referrals & affiliate links.

 

History

Landbay were launched in 2014 in the UK. In the 4 or so years they have been in business, they have built a portfolio of over £168 million lent on properties with a value of over £230 million. They are proud to declare that they have had zero defaults since they have been in business which is a great track record however you look at it. Even if there were to be defaults in the future I would not personally worry about it based on the security all of their loans have, and the provision fund on top of that, it is unlikely I would lose much capital if any at all.

Personally I have some capital in Landbay but not as much as in some of the other P2P lenders as I don’t mind taking a little extra risk for the higher returns. If you are very risk averse though, Landbay could be a good option for you.

Accounts

Landbay offer two investment accounts:

Landbay website screen shot

They have a “Fixed Rate” account offering returns of 3.54% on loan terms of up to 25 years. This has an early exit fee of 0.20% plus any difference in interest rates if they have increased since you bought your loans.

I like the “Tracker” account which tracks the “London Interbank Offered Rate” (LIBOR) which has a slightly lower return rate. However this has zero fees for exiting the account, so it is basically a quick access account that you can instantly pull your funds out of any time under normal market conditions.

Website

Investing on Landbay’s website is easy. You just choose your portfolio and return:

Landbay website screen shot

Then add money by either bank transfer or debit card (bank transfer is actually faster with Landbay which is not the norm. I typically find debit card transfers with most lenders are instant if they accept them).

Landbay website screen shot

And then sit back and watch your interest roll in.

Don’t forget to set your “reinvest” switch to on if you want a completely hands off investment experience.

 

Landbay website screen shot

 

Click here to open an account  New Customers receive £50 cashback when they join Landbay. Contact Landbay for further information. When you open an account using this link it helps me to run this website and write new reviews. Please read our referral policy for more info.

 

THUMBS UP

THUMBS UP POINTS FOR LANDBAY

  • Safety – medium size company with good history of providing secured loans to professional property investors with good LTV’s and a history of zero defaults (as of Aug 2018)
  • Provision Fund – another layer of protection covers a portion of lenders investments should a default occur.
  • Auto-Invest –very easy to invest, and hands off investing once set up
  • Website – very easy to use and understand.
  • Low minimum investment–  £100 to start – if your portfolio is still small, it’s still easy to invest with Landbay with a £100 minimum investment to start in regular account (£5000 in IFISA).
  • Instant, no cost exit – in “tracker” portfolio in normal market conditions.
  • Financial Conduct Authority (FCA) Regulated.
  • IFISA available for UK investors

 

thumbs down

THUMBS DOWN POINTS FOR LANDBAY

  • Investment Time – it can take a while to put money in the market initially, even if the amounts are small.
  • Lower Returns – lower risk investments means lower returns.

 

 

low risk traffic lights      feefo review

RISK FACTOR – 2/10 – Low

I consider Landbay to be at the lower end of the risk scale. Taking in to consideration that all loans are secured with a low LTV, and the Provision Fund, it’s hard not to give it a perfect number 1, but this is still an investment with no FIDC or FSCS insurance and as such, capital is still at risk. Although I could not find a TrustPilot rating for Landbay, their Feefo rating is very good.

 

WHO CAN INVEST WITH LANDBAY

It appears that only U.K. resident investors with a U.K.  bank account and a U.K. address and phone number can invest with Landbay. Contact Landbay for further information.

 

Click here to open an account  New Customers receive £50 cashback when they join Landbay. Contact Landbay for further information. When you open an account using this link it helps me to run this website and write new reviews. Please read our referral policy for more info.

 

 

Summary
Review Date
Reviewed Item
Landbay Peer to Peer Lender Review
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