British crowdlending platform, Sensible Lender introduces a new fixed interest lending model. All new loans will be issued at fixed interest rates set by Sensible Lender. Under this new model, Sensible Lender will set the interest rate based on risk band and loan term.
Sensible Lender is not the first lender to abandon auction listings for a fixed rate model. Many European marketplaces took this step before and the long term goal of this is that in future borrowers may have their loans pre-approved before they are even listed and have them closed instantly once filled.
Launched in 2012, Sensible Lender aims to help British borrowers struggling to access mainstream sources of finance, while providing individual investors with a good return on their money. As an investor, you have your money allocated automatically using the Auto-Matching model to match lenders proportionately to every single loan available.
Since launching, more than 200 UK borrowers have accessed finance through Sensible Lender, across 230 loans. Loans with this company are secured, so the lender is protected against default. If any of the borrowers miss payments, they risk repossession of the asset used as collateral.
Investors in Sensible Lender have passed a milestone for the peer to peer lending sector after loaning more than £50m to commercial and residential property owners in the UK. The group said its backers, who earn an interest rate on their loans of about 4% per month after fees and bad debts, were on track to lend a further £50m in 2016.
The average saver is around 50 and has around £5,000 invested – although many start with rather more than that, for example splitting £30,000 into 3-, 6-, and 12-month investments.
By bringing together industry leading risk management and cutting edge technology, Sensible Lender’s proven marketplace model enables real estate owners to access finance in days compared to weeks with a bank.
The UK government, including Harriett Baldwin, economic secretary to the Treasury, has encouraged the growth of peer to peer lending as an alternative to conventional bank lenders, especially the larger high street banks which have been hit by the greater regulation that followed the financial crisis.
They have created an application process that takes fewer than 10 minutes. Borrowers can access financing up to a maximum of £2,000,000. But unlike other lenders, Sensible Lender is not promising money in an hour. Instead, the approval process can take up to five days. However, in exchange for waiting, borrowers can receive much lower interest rates than many competitors.
Company Name: Sensible Lender Limited
Contact Person: Eric Wolle