Proplend launches new investment product
Proplend has launched AutoLend 2, a new functionality that gives lenders the flexibility of turning their investing on and off.
The peer-to-peer property lender has introduced a new auto-investing product known as Always On and a manual investing product called Self Select.
Always On is for ‘hands-off’ lenders who wish to automatically invest funds based on their set criteria while Self Select is for those who wish to choose the individual loans themselves.
Both products can be activated in classic, ISA and pension accounts and can switched between easily by turning the AutoLend 2 product on or off, which is found within the lender dashboard.
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Investors opting for the Always On product need to select a maximum amount to invest in each loan. There is a maximum investment term of five years and the product looks to invest in every available loan to create a diversified portfolio.
The product only invests in the lowest risk tranche A, up to 50 per cent loan-to-value, targeting rates of five per cent per annum after fees and bad debt but before tax.
Since launching AutoLend 2, Proplend has returned investors over seven per cent against the five per cent target.
If an investor turns the Always On product off, it cannot be reactivated for 30 days but during this period they can still use the Self Select product.
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Self Select gives total control over which loans to invest in on a loan-by-loan basis.
Rather than having to be online at noon when a loan goes live, lenders can now submit their investment orders for a specific loan in advance of it funding.
Investors pre-select which tranche or tranches to invest in, select the maximum amount to invest, subject to availability, and receive a notification as each loan comes to the platform. It turns off automatically after it has been run ready for the next loan.
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“Proplend successfully released our newest version of AutoLend,” said Brian Bartaby (pictured), chief executive of Proplend.
“We have taken the old AutoLend and split it into two distinct new products which directly reflects how two different types of lenders were using it.
“It had been over three years since we launched AutoLend and we have tracked how lenders were using it.
“Over time it became clear there were two distinct user types and we believe that Always On and Self Select will satisfy those users, whilst still ensuring that lenders still have access to the same quality loans.”
