Loanpad raises investor rates again
Loanpad is hiking its investor rates again, having steadily increased rates several times already over the past year.
From 1 April, classic account holders will earn 4.2 per cent, while premium account holders will earn 5.2 per cent. These will rise again from 1 May to 4.4 per cent and 5.4 per cent respectively.
The platform’s ISA rates are also rising in line with the standard accounts from April. However, in May ISA rates will exceed that of the standard accounts, at 4.6 per cent for an ISA classic account and 5.6 per cent for an ISA premium account.
In an announcement to investors, the lender said it would “continue to monitor interest rates carefully and a further update will be provided in due course”.
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Loanpad said it had seen a quicker turnaround of loans than it had expected, with old loans being repaid and new loans being made, and that this was enabling it to increase investor rates more quickly.
“We are pleased to report that all loans are performing with no material issues on any loans,” Loanpad said in an investor update. !As you will know, every loan we do is limited to a maximum of 50 per cent loan-to-value and therefore we do not consider any volatility in markets and/or house prices to represent a material risk to our investors. The current aggregate loan-to-value across the portfolio is 42 per cent.”
There are 175 loans, via 12 lending partners, within the Loanpad portfolio meaning that the average loan accounts for approximately 0.57 per cent of funds invested.
The lender also reassured its investors that, in light of the current situation regarding Silicon Valley Bank (SVB), it has never held accounts at SVB or SVB UK so no company or investor funds were exposed. It added that all its banking operations are with Barclays Bank.
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