Relendex is a peer-to-peer (P2P) lending platform that connects lenders with borrowers, primarily focusing on property loans in the UK. It offers various loan types, a straightforward sign-up process, and opportunities for tax-free earnings through the IFISA.
Key numbers
Who can invest?
How it works
To invest on the Relendex platform, you need a valid UK bank or building society account, and you must pass an Appropriateness Test. This test is designed to ensure that you understand the risks involved in peer-to-peer lending and that you are suitable to invest on the platform. Additionally, you must not be subject to restrictions under any jurisdiction’s laws, and you cannot be a resident or citizen of the USA or its territories.
- Specialisation: P2P commercial real estate lending platform
- Maximal observed interest rate: 11%
- Average rate: 8.5%
- Minimum investment amount: £500
- Average terms: 12
- Currencies supported: £
- Foundation year: 2011
- Commission: Relendex charges a 1% Facility Service Fee annually, may introduce a £5 or 1% loan sale fee with 90-day notice, and withdrawal charges may apply for international transfers.
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Instruction:
Getting started
Signing up
First things first, you need to sign up on the Relendex platform. You’ll complete a Lender Registration Form and go through the usual Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. Once you’re approved, you can fund your account via bank transfer. It’s pretty straightforward and they’ve got a Lender Support Helpline if you need any help.
Types of loans
Senior loans: These have the benefit of a first charge or mortgage over the property. They typically cover up to 70% Loan-to-Value (LTV).
Bridging loans: Short-term loans (6-18 months) also secured by a first charge over property.
Mezzanine loans: Higher risk as they rank behind senior loans in repayment priority.Investing
Once your account is funded, you can start investing in different loans listed on the platform. Each loan comes with detailed information, including property details, risk rating, loan amount, term, LTV, and more. You can choose to participate in either set rate auctions or dynamic auctions.
Set rate auctions
In Set Rate Auctions, the interest rate is fixed from the start. You simply decide how much you want to lend.
Dynamic auctions
In Dynamic Auctions, you bid the interest rate you’re willing to accept. The lowest interest rate bidders that collectively fulfill the borrower’s requirements win.
Innovative Finance ISA (IFISA)
Relendex offers an Innovative Finance ISA, allowing you to earn tax-free returns on your investments. The ISA works similarly to their regular lending product, but the returns are tax-free. It’s designed for long-term investments, although you can sell early through their Secondary Market if needed.
Safety
Client funds are held in a segregated Client Bank Account at NatWest Bank until drawdown for a specific loan. Investing via Relendex is not without risks. Your capital is at risk, and there’s no guarantee you’ll get back the original loan amount or the interest.
Contact
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