LendInvest’s retail bond value fell by £5.8m during pandemic


LendInvest Secured Income had a total value of £55.5m at the end of Q1 2020

LendInvest’s first retail bond saw its value decline by £5.8m between March and December 2020, as the property market reacted to the Covid-19 pandemic and nation-wide lockdowns.

LendInvest Secured Income – a London-listed subsidiary of online property lender LendInvest – had a total value of £55.5m on 31 March 2020. However, by 31 December 2020, the value of the loans had dropped to £49.7m.

In March 2020, the UK government imposed its first national lockdown in a bid to curb the spread of Covid-19. This brought the property market to a temporary standstill, while lenders were urged to offer mortgage holidays to their borrowers.

There were 75 bridging loans in the LendInvest Secured Income bond at the end of last year, with all but one holding a first-ranking legal charge. The weighted average loan-to-value (LTV) across the portfolio was 68 per cent – a slight increase on the pre-pandemic average LTV of 64 per cent.

Two loans were in material arrears at the end of December, representing a total value of £3.9m. At the end of March 2020, the bond had one loan in arrears, with a value of £1.2m.

According to the latest market update, 99 per cent of the portfolio of loans was based in England, with one per cent based in Wales. 52 per cent of the properties in the bond’s portfolio were based in Greater London.

The interest coverage ratio was 198 per cent in December, compared with an interest coverage ratio of 174 per cent by the end of March 2020.

LendInvest Secured Income came to market with a five-year retail bond issue in summer 2017. It closed early after a surge in investor demand.

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