Proplend plans new VAT loan product

Proplend is working on a new loan to help property investors pay VAT due on purchases.

The peer-to-peer commercial property lender said it has used the lockdown to evaluate its processes and product offerings, and is now working on a new VAT loan.

Read more: Proplend achieves record month in number and size of loans

“This is a loan to a property investor where the property being purchased is elected for VAT,” Proplend said in a blog post on its website.

“The borrower pays the VAT to HMRC and makes a simultaneous VAT rebate claim.

“This will be a shorter term 90 to 120 day product.”

Proplend said it broke through £50m of loans repaid and £11m of interest to lenders last year.

Its loanbook also hit £100m during 2020.

The platform recognised there had been some frustrations last year, with several loans going “way beyond” their original maturity dates, but there has been a “flurry of loan redemptions” during the past few weeks amounting to almost £6.7m across six different loans, Proplend said.