Sourced, the largest property investment platform in the UK, has launched a peer-to-peer lending product to fill the gap left by “traditional lenders’ lack of agility” according to managing director Stephen Moss.
Established to match UK and overseas investors with hand-selected investment opportunities, Sourced offers UK-wide investment advice and property sourcing through a network of 28 local offices.
Sourced has offered peer-to-peer lending since the company began trading and now expects to transact more than £2,500,000 over the next six months – thanks to a £200,000 investment in a dedicated web-based platform, which matches investors with opportunities to invest from as little as a £250 investment.
Stephen Moss, Sourced’s Managing Director said: “Peer-to-peer lending has been growing in popularity over the past five years because the traditional lending model is cumbersome and time-consuming. It’s just not agile enough for the property deals many of our investors are pursuing.
“Over the last 10 years there’s been a distinct shift in power as investors realise they can enjoy the returns typically enjoyed by the banks and conclude deals more quickly by calling on a network of their peers. P2P brings investors and opportunities together on a secure and easy-to-use web platform.
“Peer-to-peer lending is not to be confused with crowd funding. Peer-to-peer lending invests in debt not equity and as such typically offers quicker repayment terms secured against the asset, which means it minimises risk for the investors. Our repayment rate for investors is 100% because they are always repaid before the developer when a project is completed.”
Sourced’s P2P opportunities have an average six to 12 month investment term, which will deliver returns of up to 12% and are fully secured against UK property at a maximum loan to value of 70%.
The launch of P2P complements Sourced’s position as the largest network of property sourcers in the UK and its focus on providing education, guidance and support to investors of all levels of experience.
Sourced is already on track to achieve its first year target of 35 offices having just announced its latest eight openings, in Coventry, Durham, Cumbria, South Chelmsford, Crewe, Surrey, Milton Keynes and Glasgow South, which brings its total number in July to 32.