New statistics from a U.K. lending body have suggested that lending figures at one leading proptech platform have collapsed by 95 per cent, according to BusinessInsider.
Landbay was founded in 2013 and uses technology to bring investors and borrowers together allowing people to fund mortgages for buy-to-let landlords. BI reports that the company lent just £283,000 in the third quarter, compared to £5.3 million in the second quarter.
It also claims that the decline in lending occurred after Landbay stopped accepting investment money for one of its products.
Grey Stern, cofounder and CCO of Landbay, told BI: “With our proof of concept phase complete we took advantage of the usual summer lending slowdown to work on our next phase of growth. Landbay’s first two years’ of lending has performed remarkably well, with zero defaults or late payments across our 243 mortgages. This has positioned us well to open discussions with institutional lenders and further build out operational capability, which includes hiring and training more underwriters.