Inside the launch of a digital bridging lender
Aviram Shahar is co-founder and CEO at Lendlord
At Lendlord, we are launching an online bridging lender for property investors as part of our portfolio management platform. The automated lender will generate heads of terms, online applications and case tracking as part of a fully digital process.
An important element is that Lendlord users who manage their portfolios using the platform will be able to quickly review their bridging options based on the data already held on their portfolio – and Lendlord users will also benefit from better terms. Bridging is available for any non-regulated purpose up to a maximum LTV of 75%.
This is actually how the idea to launch a digital bridging lender came about. We received questions from users who asked if they could get better terms from lenders if they keep their data up to date on the platform and we realised that an automatic engine can analyse this data and suggest tailor made product rates based on a user profile.
The engine works by considering an applicant’s property investment background and experience, personal profile and credit history, as well as their exit strategy and analysis of the property that is being used as security. The more information the platform has, the more data the engine can use to make a more accurate risk decision, and so there are obviously benefits for landlords who already have their portfolio information and historical cash flow within the platform.
The system can provide indicative terms in three minutes and it takes five days once all the relevant documents have been uploaded.
It’s important to note that, while this is an automated process, and a decision in principle will be generated automatically, there will be an ultimate human approval before funds are released.
We think that, in general, the entire property sector is moving more and more online and I can see more bridging lenders moving towards a more automated process. The pandemic has only served to expedite this shift to greater use of technology.
In the case of Lendlord, currently bridging loans are only available directly to landlords, but we are looking to bring out a solution for brokers in the near future. This is a big step for Lendlord as we work towards building a one-of-a-kind technology solution to generate tailor-made financial products based on a user’s individual profile.