Things seem to be going well at LoanPad despite the pandemic, following an encouraging update sent via email to lenders yesterday: (bold = my emphasis)
We hope you and your loved ones are keeping well since our last update.
We wanted to provide a further brief performance update. Due to our lending structure and approach, we are pleased to report that we foresee no material issues as a result of the pandemic and associated lockdown. We have extended some loans already and there may be some others to follow, however, our very conservative loan to value on every loan provides a significant buffer for this eventuality.
Additionally, we are happy to report that the loan portfolio has been increasing again over the last two months, after a brief dip prior to that. As the size of the loanbook has grown since we launched last year, we have periodically increased the maximum loan size. The reason we have a maximum loan size is to ensure that no loan represents a disproportionate amount of funds to the overall portfolio, regardless of the quality of the loan. This is just one of the risk-mitigation factors we use to protect investors. In line with the continued growth of the loan portfolio, we have recently increased the maximum loan size to £1m.
We also have a very healthy pipeline of new loans to be added over the coming weeks and we look forward to adding these to the platform and continuing to improve the levels of diversification as we grow.
As always, if you have any questions or feedback please get in touch.