Proplend allows sale of partially repaid loan parts
PROPERTY peer-to-peer lender Proplend now allows investors to sell partially repaid loan parts on its secondary market.
In an email to its customers, the platform said that it had made some changes to the Proplend Loan Exchange in a bid to improve liquidity and offer lenders more options.
All sales will incur a 0.5 per cent ‘novation fee’, and there is a minimum price of £5 per loan part. The platform has reminded investors that a matching buyer is required so sales can’t be guaranteed.
This is the latest update to the Proplend platform, following an upgrade to its auto-lending facility earlier in the year. Lenders can now manually invest in tranche B and C loan parts without needing to turn off the auto-lend facility first. However, lenders will still need to turn the facility off before selling loans or loan parts.
Read more: Ex-City minister shines spotlight on P2P lending secondary markets
Proplend added that it has a current pipeline of three new loans per month on average, and expects this to rise to four loans per month in 2020.
In the first three quarters of 2019, the platform has considered commercial loans totalling more than £300m, eventually opting to fund £25m of those. The platform is expected to soon reach its £80m lending milestone.
Read more: Proplend opens commercial mortgage range to personal borrowers