Launched in 2012, Sensible Lender has more than 600 investors and over 140 borrowers from the United Kingdom with more than £32 million of bridging loans written with an average loan advance of £217,000 at an average LTV (Loan-To-Value) of 68.7 per cent. The company has already closed on £16.4 million in deals since January 2015, and has several properties under contract in Manchester, which it plans to close by the end of the year.
Sensible Lender investment uses proprietary underwriting and insight to match creditworthy property owners with lending capital sourced from private and institutional investors, family offices, and financial firms to fund loans.
The company plans to expand its business to regions beyond the UK as peer-to-peer lending is growing in popularity. A $5.5 billion industry in 2014, it’s expected to grow to $150 billion by 2025, according to reports from accounting firm PwC.
Our rapid growth is a true testament to the general state of the peer-to-peer lending sector at the moment,” says Stuart Pearson, Managing Director of Sensible Lender Limited. “It continues to experience increasing demand for niche mortgage loan products and quality asset-backed investment opportunities from both foreign and domestic investors.”
The United Kingdom is one of the most advanced countries in the world for peer-to-peer lending with over 50 major platforms launched and we believe the opportunity for asset-backed lenders centers on meeting the unmet needs of under banked small to medium-sized residential and commercial property owners as well as faster underwriting for customers already served by one of the major banks,” adds Mark Fink, Chief Operating Officer, Sensible Lender.
Scheduled for completion in 2016, it will be the fourth largest investment in the entire portfolio of Venture Capital Partners, with its strong focus on the small to mid-capitalization market segment. The investment in Sensible Lender is expected to have a lifespan of 6 years and an average annual growth rate (AAGR) of 26.4%.