LendInvest on Tuesday cited high interest rates and inflation as it expects pretax profit in financial 2024, ending March 31, to be ‘materially below market expectations’.

The London-based non-bank mortgage lender said while it made progress on several fronts, the market backdrop ‘continued to remain challenging’, citing further base rate increases that might be required to bring down high inflation, and falling house prices as well as lower levels of mortgage approvals.

‘Against this backdrop, recent trading in the first four months of FY24 has fallen short of internal budgets, with a shortfall against budget in the company’s profit before tax of £4.5 million over this four month period,’ LendInvest said.

Further, it noted that administrative expenses were slightly higher, noting the timing of some one-off items.

It expects financial 2024 pretax profit to be ‘materially below expectations’ but noted that it continues to reduce its balance sheet exposures to increase the proportion of its platform assets under management that is managed for third parties.

In financial 2023, pretax profit was £14.3 million.

LendInvest shares fell 6.0% to 47.45 pence each in London on Tuesday afternoon.

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