AltFi Data reveals new property secured lending metrics in partnership with Landbay
AltFi Data has revealed new property specific metrics to provide additional insight into secured lending performance. These metrics will supplement the existing analysis that AltFi Data provide to allow like for like comparison of the risk and return of investing in loans.
UK buy-to-let mortgage lender Landbay is the first dedicated real estate platform to adopt these new metrics. As a result the track record of Landbay’s lending can now be reviewed alongside other market leading originators using AltFi Data’s like for like comparable performance metrics. In addition investors can now access new analysis relating specifically to the property against which loans are secured. Over time a number of other secured lenders will be added to bring further context to this new real estate specific analysis.
Commenting on the announcement John Goodall, Landbay founder said:
“As the sector matures, this kind of transparency and ease of comparison is critical as the asset class becomes of interest to a growing audience. We fully support the FCA’s recent call for increased disclosure and transparency in it’s recent paper on the peer to peer sector. Standardised performance metrics help bring efficiency to the investment process whilst also highlighting to investors that we are completely confident about our model and are happy to be held accountable for the performance of our lending.”
Lending Performance Analytics
As with all originators that allow AltFi Data to create standardised measures of performance the analysis includes portfolio metrics that provide a complete historic track record in a format that is free from any distortions relating to inconsistent origination growth rates or default profiles. The chart below depicts Landbay’s net return performance according to the AltFi Data return methodology. As such it illustrates the net return that has been delivered by a portfolio made up of a uniform vintage exposure to all of Landbay’s outstanding loans since inception.
Other available functions include:
Gross origination, net lending, change in outstanding principal
Outbound lending rates and loan term
Late payments including transition matrices, defaults, recoveries, net losses, and recovery performance
Historic PDs and LGDs
Net return, loss coverage and risk adjusted return
Cohort analysis including return projections
Real estate specific metrics include:
Debt service coverage ratio
House price to income ratio
Loan to income ratio
Loan to value ratio
All analysis can be segmented by originator, risk band, asset type etc.
Established in 2014, Landbay is a marketplace lending platform for prime residential buy-to-let mortgages. With funding originating from retail and institutional investors, Landbay uses peer-to-peer technology to fund the buy-to-let mortgages of responsible landlords.
Landbay is authorised and regulated by the FCA, but peer-to-peer lending is not covered by the FSCS. Investors’ capital is at risk. Investments start at £100, with interest rates on offer of up to 3.54% (annualised).
For borrowers, Landbay products are available via its accredited broker partnerships.
Landbay is a member of UK Finance and one of eight members of the Peer-to-Peer Finance Association. The company is based in London (UK). More information can be found at www.landbay.co.uk and intermediaries.landbay.co.uk