LendInvest - Detailed Review
Finance Tools
LendInvest - Product Overview
LendInvest Overview
LendInvest is a British non-bank mortgage lender that operates as a leading property fintech company in the UK. Here’s a brief overview of its primary function, target audience, and key features:
Primary Function
LendInvest provides a platform for property lending and investing, connecting borrowers with investors. The company specializes in offering various financial solutions for property investors and developers, including buy-to-let mortgages, bridging loans, and development finance. This platform leverages technology to streamline the lending process, making it faster and more efficient for both borrowers and investors.
Target Audience
LendInvest’s primary customers include property professionals, small and medium-sized businesses (SMEs), and individual investors. The company serves a wide range of clients, from those looking to purchase rental properties to property developers undertaking new construction or refurbishment projects. Additionally, LendInvest works closely with brokers, who act as intermediaries between the company and the borrowers in the UK market.
Key Features
- Buy-to-Let Mortgages: LendInvest offers competitive buy-to-let mortgages for investors purchasing residential properties for rental purposes. These mortgages come with flexible terms to help maximize returns on investment.
- Bridging Loans: The company provides short-term bridging loans that help borrowers bridge the gap between buying a new property and selling an existing one. These loans are known for their quick approval processes and flexibility in use, such as purchasing properties at auction or renovating properties.
- Development Finance: LendInvest offers development finance solutions to support property development projects, including funding for land acquisition, construction costs, and other project expenses.
- Investment Opportunities: The platform allows individuals, corporates, and institutions to invest in secured property loans, providing an opportunity to earn attractive returns on their capital.
- Technology-Driven: LendInvest uses advanced technology to streamline the lending process, ensuring faster and more efficient services for its clients. This includes providing underwriters with the data and customer insights needed to make informed decisions.
Overall, LendInvest is committed to making property finance more accessible and affordable, driven by its mission to provide innovative, transparent, and customer-centric financial solutions.
LendInvest - User Interface and Experience
User Interface and Experience of LendInvest
The user interface and experience of LendInvest, a leading UK platform for mortgages and property finance, are designed with several key aspects in mind to ensure ease of use and a positive user experience.
Ease of Use
LendInvest’s platform is generally user-friendly, especially for investors. The signup and onboarding process is rated as decent, with a score of 8/10. Users need to provide personal information, such as email, phone number, and financial details, and undergo identity verification, which is streamlined through partnerships with third-party organizations like Jumio.
User Interface (UX)
The interface is described as “snappy and streamlined.” From the dashboard, users can easily view key metrics such as the total amount invested, average interest rate, liquid capital, and the status of their loans (whether they are on schedule, in arrears, or in default). The platform presents important information clearly, making it easy for users to browse different loan opportunities and review expected returns and Loan-to-Value (LTV) ratings.
Features and Functionality
LendInvest focuses primarily on peer-to-peer (P2P) loans, although it operates slightly differently from traditional P2P platforms. Instead of direct contracts between lenders and borrowers, contracts are between borrowers and LendInvest, which streamlines the lending process. This setup allows investors to be relatively hands-off, as LendInvest handles underwriting, borrower verification, loan issuance, and interest payments.
Customer Support and Interaction
To enhance customer support and operational efficiency, LendInvest has implemented a live chat solution through Talkative. This has significantly improved their interaction rates, with a 108% month-on-month growth in interactions. The live chat, integrated with Salesforce, enables agents to respond faster and more efficiently, providing a better customer experience for brokers and other users.
Accessibility and Design System
LendInvest has also worked on improving its design system to ensure consistency and efficiency across the brand. This involved addressing UI inconsistencies, development inefficiencies, and slower product delivery. The new design system focuses on enhancing user experiences, meeting WCAG 2.1 guidelines for accessibility, and ensuring components are perceivable, operable, and robust. User feedback and usability sessions have validated the effectiveness of these changes.
Overall User Experience
The overall user experience is positive, particularly for investors who appreciate the hands-off approach to lending. However, there are some limitations, such as the lack of monthly loan updates or property valuation documents, which might be a drawback for some users. Despite this, the platform’s clear presentation of information and efficient customer support mechanisms contribute to a generally positive user experience.
LendInvest - Key Features and Functionality
LendInvest Overview
LendInvest, a property fintech company, offers several key features and functionalities that leverage technology to streamline the property finance process. Here are the main features and how they work:Online Marketplace for Property Finance
LendInvest operates as an online marketplace that connects borrowers with a network of institutional and individual investors. This platform allows for efficient matching of borrowers and investors, providing competitive rates and flexible terms for property finance.Types of Loans
LendInvest offers a variety of loan products:Buy-to-Let Mortgages
These mortgages are for investors looking to purchase residential properties for rental purposes. They offer competitive rates and flexible terms to help maximize returns on investment.Bridging Loans
These are short-term loans used to bridge the gap between buying a new property and selling an existing one. They provide quick access to funds, which is crucial in competitive property markets.Development Finance
This type of funding supports property development projects, including land acquisition, construction costs, and other project expenses. The process is streamlined using technology to ensure quick and efficient access to funds.AI-Powered Identity Verification and eKYC
LendInvest has partnered with Jumio to integrate AI-powered identity verification and eKYC solutions into their platform. This allows customers to use biometric-based technology to confirm their identity online by uploading a photo of their ID document and taking a selfie. This process speeds up the onboarding application and eliminates the need for physical documents, making the application process more efficient.Technology-Driven Application Process
LendInvest’s proprietary technology delivers a market-leading user experience for brokers and borrowers. The platform provides clear and intuitive user journeys, increased visibility into the application process, and digital delivery of key documentation. This fosters trust and stronger relationships with borrowers and brokers by ensuring transparency and speed in the loan approval process.Revenue Generation
LendInvest generates revenue through several channels:Interest Income
Earned from the loans provided to customers.Loan Origination Fees
Charged to customers when they take out a loan.Servicing Fees
Earned for managing the loans, including tasks like collecting payments and handling customer inquiries.Secondary Market Trading
By selling loans to other investors, LendInvest can realize gains and free up capital for new loans.Technology Platform Fees
Fees may be charged for using the platform.Streamlined Onboarding and Loan Management
The integration of technology, such as biometric onboarding, reduces the time and effort required for the application process. This makes it faster and easier for customers to apply for mortgages and other property finance products. The platform also offers real-time tracking of cases and digital delivery of key documentation, enhancing transparency and efficiency. While the specific integration of AI beyond identity verification and eKYC is not detailed in the available sources, LendInvest’s use of technology to streamline processes and provide a seamless user experience is a key feature of their product. However, there is no explicit information on how AI is integrated into other aspects of their finance tools beyond the onboarding process. LendInvest - Performance and Accuracy
Financial Performance
LendInvest has recently faced some challenges in its financial performance. For the 2024 financial year, the company reported a loss after tax of £20.1m, which is a significant decline from the previous year’s profit of £11.4m. This loss was attributed to several factors, including accelerated recoveries of non-performing assets, the disposal of low-margin assets, lower lending volumes, and higher one-off costs.
In the first four months of its 2024 financial year, LendInvest expressed disappointment with its financial performance, citing a shortfall in unaudited profit before tax of £4.5m. This was largely due to a drop in the volume of originations and reduced demand for development finance.
Operational Efficiency and Technology
Despite the financial challenges, LendInvest has been focusing on improving operational efficiency through technology. The launch of its Mortgages Portal is a notable example, aimed at enhancing the broker and customer experience and improving cross-selling opportunities. This initiative suggests that the company is committed to leveraging technology to streamline its processes and improve performance.
However, there is limited specific information available on how LendInvest integrates AI-driven tools into its finance operations. While the company is developing its technology to make the lending process more competitive, detailed insights into AI-specific enhancements are not provided in the available sources.
Risk Management and Accuracy
LendInvest has a structured approach to managing risk, which includes using a restricted valuer panel for all residential and commercial valuations and regular reviews of the valuation service. This approach helps in maintaining the accuracy of property valuations, which is crucial for securing loans.
The company’s loan book has historically shown low default rates and capital losses, indicating effective risk management and recovery processes. For example, in 2019, LendInvest reported a default rate of 0% and a loss rate of 0.13%.
Limitations and Areas for Improvement
One of the significant limitations is the lack of transparency in valuation documents. Investors are heavily reliant on LendInvest’s due diligence since they do not have access to these documents, which could be a concern for those who prefer to conduct their own research.
Another area for improvement is the absence of a secondary market for buying and selling loans. This limits the liquidity options for investors, making it difficult for them to exit their investments if needed.
Conclusion
In summary, while LendInvest faces current financial challenges, it is taking steps to improve its operational efficiency through technology and maintains a strong focus on risk management. However, there are areas such as transparency in valuation documents and the lack of a secondary market that need to be addressed to enhance investor confidence and flexibility.
LendInvest - Pricing and Plans
Pricing Structure Overview
LendInvest’s pricing structure for its mortgage products, particularly in the buy-to-let and residential remortgage categories, is organized into several key components and tiers. Here’s a breakdown of the main points:
Interest Coverage Ratios (ICRs) and Loan-to-Value (LTV)
- LendInvest uses different ICRs based on the borrower’s tax status. For example, basic-rate taxpayers (20%) require a 125% ICR for single properties and 130% for HMOs (Houses in Multiple Occupation) or MUFBs (Multi-Unit Freehold Blocks). Higher-rate and additional-rate taxpayers need a 140% and 145% ICR respectively for single properties and HMOs/MUFBs.
Loan Tiers and Fees
- The loan amounts and associated fees vary widely. For instance, there is a non-refundable application fee of £199 across various loan amounts up to £1,000,000. For higher loan amounts, additional fees apply, such as a mortgage valuation fee that can range from £0 to £1,161 depending on the loan amount.
Loan-to-Value (LTV) and Product Fees
- LendInvest offers loans with different LTV ratios. For buy-to-let loans, the maximum LTV is 75% for small MUFBs, and for standard properties, it can be up to 75% as well. Product fees range from 1.50% to 2.00% of the loan amount, depending on the LTV and loan type.
Tiered Pricing for Residential Remortgage
- LendInvest has introduced limited-edition residential remortgage products with no product fees for Tier 3 and Tier 4 loans. Tier 0-2 loans offer reduced rates with no fees. Additionally, there are five-year fixed rates available at 65% and 75% LTV with a £1,995 product fee.
Interest-Only and Part-and-Part Mortgages
- LendInvest now offers interest-only mortgage options up to 70% LTV and part-and-part mortgages at 75% LTV, providing more flexibility for borrowers.
Free Options and Incentives
- There are no completely free options, but LendInvest does offer incentives such as contributions towards legal fees (up to £700) in some cases. However, borrowers are generally liable for their own costs, including separate legal representation if required.
Conclusion
In summary, LendInvest’s pricing is structured around various tiers based on loan amounts, LTV ratios, and the borrower’s tax status, with different fees and interest rates applied accordingly. There are no entirely free options, but certain incentives and reduced fees are available on specific products.
LendInvest - Integration and Compatibility
Integration and Compatibility at LendInvest
LendInvest, a leading UK-based property fintech company, integrates various tools and technologies to streamline its lending processes and enhance user experience. Here are some key aspects of its integration and compatibility:Identity Verification and KYC
LendInvest has partnered with Jumio, a provider of AI-powered identity verification and eKYC solutions. This integration allows for the digital verification of identities, enabling applicants to upload their ID documents and take a selfie using their smartphone. This process is compatible with smartphones, making it accessible across different devices. This partnership simplifies the mortgage application process, reducing the need for physical documents and speeding up the overall application time.Data Management and Automation
LendInvest uses dbt Cloud and Synq to manage and automate its data processes. This integration helps in extracting, transforming, and normalizing loan data from different core systems, ensuring data consistency and accuracy. The system checks for discrepancies in real-time and alerts the relevant teams, which is crucial for maintaining accurate and reliable data across the platform. This automation is key to providing clear and concise information to brokers and other stakeholders.Online Platform and User Experience
LendInvest’s platform is built to be user-friendly and accessible. It connects borrowers with a network of institutional and individual investors, offering a seamless and transparent lending experience. The platform supports various types of property finance, including buy-to-let mortgages, bridging loans, and development finance. This online platform is designed to be efficient and easy to use, making it compatible with a range of devices and browsers.Strategic Partnerships
LendInvest collaborates with various strategic partners, including financial institutions and other fintech companies. For example, it has a funding partnership with J.P. Morgan to finance its Buy-to-Let product. These partnerships help in expanding its services and improving its operational efficiency, though specific details on the technical integration of these partnerships are not provided.Regulatory Compliance and Technology
To ensure regulatory compliance and enhance operational efficiency, LendInvest invests heavily in technology. It leverages data analytics, artificial intelligence, and automation tools to streamline its processes. While the specific details of how these technologies integrate across different platforms are not extensively detailed, it is clear that technology plays a central role in maintaining compliance and improving the customer experience.Conclusion
In summary, LendInvest integrates advanced technologies and tools to enhance its lending processes, ensure data accuracy, and provide a seamless user experience. Its compatibility across different devices, particularly smartphones, and its online platform make it accessible and efficient for both borrowers and investors. However, some specific technical details of these integrations may not be publicly available. LendInvest - Customer Support and Resources
Contact Options
For immediate assistance, customers can contact LendInvest through several phone numbers:- Customer Service: 44 203 846 6880
- Loan Servicing: 44 207 118 1900 or 44 20 3846 6822
Email Support
Customers can also reach out via email for various inquiries:- For loan servicing and general mortgage-related questions, email
mortgageservicing@loans.lendinvest.comwith your account number included. - For other customer service inquiries, you can use the customer service email, though the specific address is not provided in the sources.
Additional Resources
Help Center and FAQs
LendInvest has a comprehensive help center and FAQ section on their website, which addresses common questions about mortgage accounts, including how to update contact details, request statements, and obtain redemption statements.Website and Corporate Office
Customers can visit the LendInvest website for detailed information about their services and products. Additionally, the corporate office is located at Two Fitzroy Place, 8 Mortimer Street, London, England W1T 3JJ, for those who need to contact them in person.Operational Hours
The customer support lines and email services are available from 9 am to 5:30 pm, Monday through Friday, excluding public holidays. If your request is urgent, it is recommended to call the loan servicing team directly.General Information
For general inquiries or media-related questions, there are specific contact numbers and emails available:- General Info: 44 800 130 3388
- Media Inquiries: 44 203 846 6817
LendInvest - Pros and Cons
When Considering LendInvest as a Finance Tool
Here are the key advantages and disadvantages to be aware of:
Advantages
- Transparent Financial Information: LendInvest is praised for its transparency, as it publishes its entire loan book, company financials, and default statistics. This openness helps build trust with investors.
- Diverse Array of Lending Projects: The platform offers a wide range of lending projects, primarily focusing on bridging loans and short-term buy-to-let loans. This diversity provides multiple investment opportunities for lenders.
- Profitable and Financially Stable: LendInvest is a profitable company with strong financial backing, which inspires long-term confidence in its ability to sustain itself financially.
- Reasonable Loan-to-Values: Loans are secured by sensible loan-to-values, typically ranging from 35% to 70%, which helps protect lenders in case of defaults.
- Auto-Invest Options: The platform offers an auto-invest feature that allows lenders to reinvest their interest payments automatically, ensuring their money is not idle. This feature can be set up with a minimum of £1.
- No Fees for Investors: LendInvest does not charge any fees to investors, making it a cost-effective option for those looking to invest in property-backed loans.
- Efficient Interest Payments: LendInvest handles all interest payments, collecting from borrowers and depositing directly into the lender’s account, making the process hands-off for investors.
Disadvantages
- Not Genuine P2P Lending: LendInvest does not facilitate direct contracts between lenders and borrowers; instead, the contracts are between the borrowers and LendInvest. This can be seen as a technicality but may not align with traditional P2P lending expectations.
- No Secondary Market: There is no secondary market available for lenders to buy or sell loans, limiting the flexibility of their investments.
- Limited Access to Valuation Documents: Lenders do not have easy access to property valuation documents, which can make it difficult for them to conduct their own due diligence on the loans.
- Large Loan Sizes: Some loans on the platform are quite large, which can be a concern if these loans default.
- No FSCS Protection: Investments through LendInvest are not protected by the Financial Services Compensation Scheme (FSCS), meaning lenders could lose their money if the company fails.
- Withdrawal Restrictions: Money deposited via debit card cannot be withdrawn for 90 days, which may be inconvenient for some investors.
While LendInvest offers several benefits, particularly in terms of transparency and financial stability, it also has some significant drawbacks, such as the lack of a secondary market and limited access to valuation documents. It’s important for potential investors to weigh these pros and cons carefully before making a decision.
LendInvest - Comparison with Competitors
Unique Features of LendInvest
- LendInvest uses Salesforce to streamline its loan application process, significantly reducing the time it takes for customers to gain approval and release funds. This is achieved through the integration of Salesforce Community Cloud, Sales Cloud, and Service Cloud with LendInvest’s proprietary Loan Engine and external databases.
- The platform manages the entire workflow, from application to compliance checks to approval, providing a full digital audit trail and integrating with the Land Registry, credit bureaus, and valuation data.
- LendInvest also utilizes Pardot for marketing automation to nurture customer relationships and keep brokers updated on new products and opportunities.
Competitors and Alternatives
CapitalRise
CapitalRise is another player in the property investment sector, focusing on providing a platform for investors to fund property projects. Unlike LendInvest, CapitalRise does not emphasize short-term loan applications but rather long-term property investments.
Cadre
Cadre operates as a real estate investment platform, offering predictive models and workflow tools to help users invest in a diversified portfolio of properties. While Cadre focuses on predictive models and diversified portfolios, LendInvest is more specialized in short-term property finance solutions.
Molo
Molo is a fully digital mortgage lender that allows customers to obtain instant mortgage loan approvals through an online process. Unlike LendInvest, Molo is focused on traditional mortgage lending rather than specialist property deals like buy-to-let, refurbishments, and green renovation projects.
TAB
TAB specializes in providing short-term bridging loans in the property sector. While both LendInvest and TAB offer short-term lending solutions, LendInvest’s use of Salesforce and its integrated workflow sets it apart in terms of efficiency and data integrity.
Kiavi
Kiavi, formerly known as LendingHome Funding Corporation, combines technology and data analysis to provide real estate loans to residential real estate investors. Kiavi serves a broader range of investors, including small individual investors and large institutional funds, but does not have the same level of integration with external databases and proprietary loan engines as LendInvest.
AI and Technology Integration
LendInvest’s strong integration with Salesforce and other tools like Google Workspace, Monday.com, and Concord contract management differentiates it from competitors. This integration allows for quicker processing of administrative tasks and more accurate decision-making by human experts, which is not always the case with other platforms.
In contrast to other finance tools that rely heavily on AI for financial planning and analysis (such as Vena Solutions, Planful, and Workday), LendInvest’s primary focus is on streamlining the property finance process rather than broad financial planning or predictive analytics.
Conclusion
LendInvest stands out for its specialized approach to property finance, leveraging advanced technology to make the loan application process more efficient and less stressful. While competitors offer various strengths in property investment and mortgage lending, LendInvest’s unique integration with Salesforce and its focus on specialist property deals make it a compelling choice for those seeking streamlined property finance solutions.
LendInvest - Frequently Asked Questions
Frequently Asked Questions about LendInvest
What services does LendInvest offer?
LendInvest offers a range of property finance services, including buy-to-let mortgages, bridging loans, and development finance. These services are designed to support property investors and developers in various aspects of property acquisition, renovation, and development.How do bridging loans work with LendInvest?
Bridging loans provided by LendInvest are short-term loans used to bridge the gap between buying a new property and selling an existing one. These loans offer quick access to funds, typically ranging from a few months to a year. Borrowers need to provide details about the property and their financial situation, and LendInvest assesses the application to determine the loan amount and terms. The loans are flexible and can be used for various purposes, such as purchasing a property at auction or renovating a property.How does LendInvest generate revenue?
LendInvest generates revenue through several channels, including origination fees, interest on loans, and servicing fees. The interest rates on bridging loans, for example, are higher than traditional mortgages due to the short-term nature and higher risk involved. Additionally, fees for arranging the loan or early repayment may also be charged.What is the process for applying for a loan through LendInvest?
The application process for loans through LendInvest is streamlined using technology. For instance, the platform uses Salesforce to integrate with external databases, reducing the number of steps and time required for approval. This process includes credit checks and compliance checks, all managed through a seamless case management system. For buy-to-let mortgages, LendInvest has also integrated biometric onboarding with Jumio to verify identities and proof of residency, making the application process more efficient.How long are my funds committed for if I invest through LendInvest?
If you invest through LendInvest, your funds are committed for the duration of the loan you have selected. This means you cannot resell or redeem your investments early. LendInvest will repay the capital to investors after the loan is repaid by the borrower. The term may be extended with LendInvest’s agreement or shortened if the borrower repays early.What are the benefits of using development finance from LendInvest?
Development finance from LendInvest offers several benefits, including speed and efficiency in the application and approval process. Unlike traditional lenders, LendInvest uses technology to streamline this process, allowing developers to access funds quickly. The financing options are flexible and can be customized to meet the specific needs of each development project. Additionally, LendInvest offers competitive interest rates and expert guidance from a team of property finance professionals.How does LendInvest ensure the security and integrity of the lending process?
LendInvest ensures the security and integrity of the lending process by integrating with various external databases, such as the Land Registry and credit bureaus, through Salesforce. This integration provides a full digital audit trail and strengthens data integrity. The platform also conducts thorough due diligence on each development project to assess the risks involved and ensure that the funding provided is appropriate and sustainable.Can I use biometric onboarding for LendInvest’s services?
Yes, LendInvest has partnered with Jumio to offer biometric onboarding for digital applications, particularly for buy-to-let mortgages. This process involves uploading a photo of your ID document and taking a selfie using your smartphone to confirm your identity online, which speeds up the application process and eliminates the need for physical documents.How does LendInvest manage the loan application process for short-term loans?
LendInvest uses Salesforce Sales and Service Cloud to manage the end-to-end short-term loan applications. This includes triggering an opportunity in Sales Cloud when an application is received via brokers, managing credit checks through a seamless case management process, and tracking missing assets. This integrated approach ensures a smooth and efficient workflow from application to approval.What kind of support does LendInvest offer to its customers?
LendInvest provides personalized guidance and support throughout the financing process. The company has a team of industry professionals who are dedicated to helping borrowers and developers. This support includes expert advice on the best financing solutions for specific needs and ongoing management of the loan process.