After introducing its property offering to its investors last November, by the end of this month the peer-to-peer powerhouse will have seen just over £6 million of property loans funded.
Residential development facilities are thought to take up around 70 per cent of that figure with the average loan amount resting between £800,000 and £1.2 million, drawn down within some point of a facility’s lifetime.
The average lifetime seen by the platform is around 12 to 24 months.
In reference to the uptake, the figure at the forefront of Funding Circle’s property finance offering, Luke Jooste said: “It just shows how much pent up demand there is in the property market. Which is the reason why we provide such a service.”
He added that the eager uptake is also an indication that: “In the property space the peer- to-peer platform is a credible player in the market.”
In kick-starting its move into the property finance sector, back in April the P2P marketplace funded a £265,000 loan intended to refinance a bank loan and also release £64,000 in equity.
The interest rate was fixed at 8.5 per cent for lenders, but Funding Circle also offered 2 per cent cashback on this.
Luke Jooste, joined the lender at the end of last year when the firm decided to open its offering towards structuring commercial finance for property development, mortgages, buy-to-let investment and residential buy to let finance.
Earlier this month, Funding Circle obtained a $65 million investment raised via a Series D funding round led by Index Ventures with participation from existing investors, Accel Partners, Union Square Ventures and Ribbit Capital.
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