18 November, 2016

Relendex Investment Review

Founded in 2013, Relendex helps private and institutional investors gain direct exposure to property loans. Whether a professional fixed income investor like a family office or pension fund, or a retail saver looking for an alternative, Relendex aims to accommodate those managing small or large portfolios. Investors lend against commercial and residential property – often tenanted and producing income – ensuring capital protection is at the forefront of Relendex’s mandate. You can earn fixed interest rates up to 10% per annum on risk graded loans, bidding on loan parts and setting the rate of return you want, or, investing in loans with a set interest rate.

To help you get a better understanding of Relendex and investing in UK real-estate, read our review of this manual loan-selection platform below.

Key Statistics

All statistics and information are correct at time of publication, November 2016.

Total lent funds to-date


Estimated returns/rates (three investment gradings)

Risk A:  6-10% p.a

Risk B:  9-12% p.a

Risk C:  12-15% p.a

Default rate


Minimum investment


Loan Purpose

Relendex arranges short and medium term senior loans and mezzanine finance for commercial property investments, residential investments and owner-occupied commercial properties.

Borrowers include:

  • Private property investors
  • Private property companies
  • Commercial property companies
  • Publicly quoted property companies
  • Private trusts
  • Real estate funds

Loan value

£100,000 - £2million

Loan term

6 months to 5 years


All loans are secured by legal mortgages against professionally valued properties that can, in the event of loan default, be sold to recover debt owed.

Capital protection

Relendex considers capital protection as the most important pillar of its business. An experienced team of experts evaluate borrowers rigorously, ensuring all loans meet the strict lending and underwriting criteria set out by Relendex before admitting them onto the platform.

Nine key criteria are considered when evaluating a borrower and their property, the most important being Loan-to-Value (LTV) and Interest Coverage Ratio (ICR). A risk grading is then produced by the property lending team as a guide for you and other investors.

Risk matrix

The Relendex ‘Risk Matrix’ was created with the purpose of offering support when making your investment decisions. It offers no guarantees. The four main categories considered in the matrix are exhibited in this screenshot:

The lending team will evaluate borrower loan applications by reviewing each category and scoring each element respectively. The weighted overall scores will place the loan proposal, and borrower, into a risk grade* determining the likelihood of a default on the loan resulting in a loss of capital. This is a relative not an absolute scale.

NB: This is a guide, not a guarantee.

Asset security

Retail, offices, industrial and some residential (including developments) assets can be taken as protection over the loan. Relendex will take security over the rental income, if applicable.Each lender group formed in the auction will benefit from a mortgage over the borrower’s asset:

  • Senior loans hold a 1st charge
  • Mezzanine loans hold a 2nd charge

Visit Relendex Website

Investment Auction Process

When signing up on Relendex you will need your passport (the long passport no. with chevrons ‘<’ is required) as well as other personal details, before submitting identity docs for KYC and AML checks. This is a fairly standard process when investing in peer-to-peer lending.

You will then gain access to the Auction Marketplace and Resale Marketplace where you can buy live loan parts or purchase existing investor’s loan parts which are up for sale on the Relendex secondary market.

Relendex operates a live auction marketplace, where you can either bid on set rate loans or define your own interest rate, depending on the auction type.

‘Set Rate Auction’

In this auction, the interest rate you receive is pre-set and fixed, so cannot be changed.

‘Dynamic Auction’

In a live Dynamic Auction, you bid manually (‘Manual Bid’) and can either set a single interest rate or a range. You bid the amount you specify by completing the ‘Amount’ box in the ‘Make a Bid’ section.

When setting your bid, you are instructing the platform to bid within your specified range to ensure you are in the winning frame for that specific loan auction. Your bid will be continued until the range is exceeded – due to your lowest bid being beaten by other investors – or the auction closes with your bid being a winning bid and comprising the loan.

Benefits Investing

With an investment across the Relendex platform you will receive some of the best interest rates on the market, uncorrelated to stock market volatility and secured on tangible assts. Exposure to Relendex loans can be beneficial to small or large portfolios.

Secure lending

All loans are secured by a mortgage against professionally valued properties that can be liquidated to recover debt. Even though Relendex expect this to be unlikely, as represented by its 0% default rate to-date, there are no guarantees, so this sort of portfolio would suit a more hands-on investor with an appropriate risk appetite.

Balanced portfolio

If you’re an experienced investor looking for exposure to asset-backed property loans, Relendex could be a good option to earn yield and balance your investment portfolio.

Relendex ‘Resale Market’

Peer-to-peer lending is not associated with being a liquid asset class, but as platforms aim to strike a balance between existing investors and new investors, the ability to access your money early has become something Relendex has focused on heavily. The platform’s recently launched ‘Resale Market’ allows you to buy and sell loan parts. Key features include:

  1. All loan parts are sold at par.
  2. No fees charged for transactions.
  3. Only applicable for interest-only loans.

Risks Investing

Peer-to-peer lending is not a savings product, therefore you are not covered by the Financial Services Compensation Scheme (FSCS), this applies to Relendex. Also, you are responsible for selecting your own loans, which for first time or novice investors can be problematic.


With manual-loan-selection platforms like Relendex you conduct your own due diligence on investment opportunities. This means you can construct your own portfolio of diversified property investments, but you will require a reasonable degree of skill and experience in doing so to ensure the investments you select fit your own risk profile.

Risk grading

The Relendex Risk Matrix is beneficial in categorising loans by grades A+ to C (least risky to most risky) but it is not a substitute for doing your own due diligence and defining the amount of risk you want to take. You are putting trust in Relendex and its matrix for determining risky investments.


Relendex is a niche peer-to-peer lending platform catering to retail investors and professional investors alike. Investors can bid on loan parts and set their own rate, or accept a set, fixed rate of return. Also, all loans are asset-secured and vetted rigorously with risk grades applied by way of Relendex’s unique Risk Matrix.