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Landbay: Disrupting P2P lending by targeting the residential buy-to-let market

John Goodall and Gray Stern are the creators of Everline Future 50 entrant Landbay, a business disrupting P2P lending and the buy-to-let property sector, having realised the particular real estate market was strong enough to provide funding with very low risks involved.
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Name: Landbay
Industry/sector: Finance
Date founded: 2014
Founder: John Goodall and Gray Stern
Location: London

Spotting a gap in the peer-to-peer (P2P) lending market led John Goodall and Gray Stern to seize the opportunity by founding Landbay, a secure platform that targets the residential buy-to-let sector. Describing the market as resilient, the founders chose the space having recognised the repossession rate during the financial crash in 2008 was just 0.35 per cent and just 0.09 per cent in 2014.

Goodall started off with a recruitment firm before started a financial services executive search company, then going on to sell his stake to teach economics. Meanwhile, Gray has over 15 years worth of property finance experience after starting his career as a corporate analyst before moving into structured finance.

Finance, technology and property experience throughout the senior team is vast, with Goodall, Stern and the company’s head of finance and CTO collectively possessing international knowledge. Additionally, chairman Tony Ward is the former CEO of Britannic Money, while ex-Zopa CEO James Alexander and Quidco MD Andy Oldham are on the advisory board to round of expertise.

Seedrs kicked off the investor interest in Landbay, the eighth most equity-crowdfunded business, with funding 276 per cent over target in June 2014. The company lent more than £1m of mortgage-based financing in seven months and hundreds of users are registered to the platform.

Risk is lowered as borrowers are offered a “fast, rational approach to mortgage applications” and mortgage brokerage partnerships are in place to make sure that reliable borrowers are handpicked.

Goodall and Stern, said: “Not only do we disrupt the mortgage lending market, but Landbay also disrupt P2P. By lending solely on residential BTL, all lending is secured on income-producing assets; we see this as the most secure option in the P2P market.

“Our bricks-and-mortar security is further supported by our loan auto-diversification which ensures the lenders’ funds are never solely reliant on one particular property type or region. We offer lenders a choice between Fixed and unique Tracker rates, with more lending products planned for release in 2015.”

The company is in a strong position at present with growth in P2P and BTL predicted to rise, with the former doubling over the past year and the £20bn lent to landlords in 2013 to increase by 30 per cent annually.

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Zen Terrelonge

Zen Terrelonge is the former deputy editor of Real Business. His areas of interest included media, innovation, technology and the digital sector.

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