5. Choosing loans and making investments

  • Can I choose which loans I wish to invest in?

    Yes. You have full control of which loans you would like to invest in.

  • Can I automatically invest funds in my account?

    Yes. The ‘auto-invest’ feature in your online account does just that, helping you keep your funds invested.

    Once you’ve enabled auto-invest and set your investment criteria, your available cash balance (comprising funds you’ve added to your account and loan repayments, but not your monthly income) will be invested in open investment opportunities that match your criteria.

    Subject to the criteria you set, our auto-invest algorithm allocates your available cash balance in line with the size of each available loan on the platform. This ensures your available capital is reinvested quickly and reduces the number of transactions you have to read through in your investment summary.

  • Can I automatically invest the income I earn?

    Yes. The ‘manage your income’ feature in your online account allows you to specify what to do with the income you earn.

    To automatically reinvest your income, select the ‘reinvest’ option. Once activated, any income you earn will be reinvested across available investments. If auto-invest is activated, your income will be reinvested in line with your auto-invest criteria.

  • How do I find out more about a particular loan?

    All available investment opportunities are located on the ‘Invest’ tab of your online account. To view them, you will need to have confirmed your eligibility to invest. Clicking ‘More details’ in the top right corner of a particular investment opportunity provides more information about the specific property against which the loan is secured.

  • What kind of information can I see about each loan?

    Eligible investors can view a summary of key information about all available loans on the loan listings page. This includes:

    • The annualised interest rate available
    • The size and remaining term of the loan
    • The loan-to-value (LTV) ratio
    • How much of the loan is available to invest
    • How the borrower plans to exit the loan
    • Property specification and location
    • What the borrower intends to do with the property
    • Who provided the valuation
  • How does tranching work at LendInvest?

    Available loans on our platform are commonly split into two parts or ‘tranches’. Tranche information is located in the ‘Investment options’ section of each loan. At LendInvest, we call these portions of loans Tranche A and Tranche B.

    Each tranche offers investors a fixed rate of return which reflects the loan-to-value. To reflect the priority in which tranche investors are paid, Tranche B investors will be entitled to receive a higher income rate than Tranche A investors in respect of the same loan.

    In all tranches, the security for the loan remains exactly the same because the underwriting process has been done for the whole loan.

  • What is the difference between Tranche A and B?

    Tranche A investors take on a lower level of risk and so stand to receive a lower rate of return than Tranche B investors. This means that an investor that chooses to invest in Tranche A will, in respect of each scheduled repayment of capital or income from a borrower, be paid in priority to a Tranche B investor.

    If a Tranche A payment is not made in full, no further payments to Tranche B investors will be received until all Tranche A payments are up to date. To reflect the priority in which tranche investors are paid (and therefore the additional risk), Tranche B investors are entitled to receive a higher income rate for the same loan invested in.

  • What is the minimum and maximum I can invest in a particular loan?

    The minimum amount you need to place in your wallet before investing is £1,000. The minimum amount you can manually invest is £100 per investment opportunity. The maximum investment amount is only limited by the size of the loan into which you wish to invest.

  • Do I have to wait until the loan is fully invested before I start earning income?

    No. The loans to the borrower are already fully funded by LendInvest when they are listed on the platform. You will start earning income (sometimes referred to as interest) from the day you invest.

  • When is the income (sometimes referred to as interest or return) paid to me?

    Income is​ ​calculated daily and ​paid into your online account on the first day of the month. ​

    If a loan is repaid part way through a month, the income owed is immediately paid into your online account along with capital repayable.

  • Can I withdraw funds while they are invested in loans?

    No. When you make an investment, your funds are committed for the duration of the underlying loan.

  • Can I increase existing investments with the interest I receive?

    Yes. It is possible to increase an existing investment, if that particular investment opportunity is still available. In this case, you can make an additional new investment of £100 or more into it. If the loan is fully funded, this will not be possible. We encourage our investors to diversify their investments across different loans on the platform as well as across different asset classes.