Brexit Moves with Online Mortgage Market 50% LendInvest
London fintech company put out result on Friday showing revenues £32 million in the year to March 31, 2016,up from £14 million year earlier. Profit was largely flat on 2015's haul of £3.3 million.
Lets institutional investors and ordinary investors finance short term mortgages, wherein people buy houses that need work, repair them then quickly sell hem on profit.
Loans are secure and he platform offers return 5% per year to Investors who finances these loans.
"Its an interesting time for us. The last couple of year's we've shown we can be profitable. We are also keen to show that we can grow the business, which we have done quite a lot in the last year. Profit haven't accelerated but they've stayed steady. If we had fewer people we'd certainly have more substantially profit." Said CEO and Co-Founder Christian Faes to an interview.
He also said that the growth in revenue came from existing costumers investing more money on the platform, and that new costumers are coming in, and new product.
He also said that on the borrowers side, he thinks that the property market is slowing down but thinks that a lot of that is a result of stamp duty increases this year as much as Brexit.
He also said that he thinks that Brexit is offset by the falling pound. We're seeing foreign buyers coming in and supporting the market to some extent.
LedInvest lent £320 million over its platform in the year to March 2016 end, compared to £174 million in the proceeding 12months.
Faes also told an interview that earlier this year when LedInvest raised £17 million that the company planned to get into buy-to-let motgages. He said that " It's a working progress. For us, we want to make sure that we have the best cost of capital so were talking with a number of institutions now. We're hopeful of being active in the market next year."