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P2P platform Lendy tops £400m funding

Peer to peer secured property lending platform, Lendy, has broken the £400 million barrier in financing UK property market.

Lendy’s latest milestone comes as some banks pare back their lending and more property developers seek out alternative finance options.

The firm reached £300 million in lending in April last year and has funded hundreds of bridging and commercial property development loans since its launch in 2012. These include residential developments, commercial property, and conversions.

The £400 million has been invested by over 21,500 investors who have earned more than £40 million in interest so far.

Lendy says one of the keys to its success has been the level of due diligence it carries out, such as its property valuations are always carried out by RICS registered property valuers.

Property developers are turning to alternative forms of finance such as P2P thanks to quick turnarounds and availability. Lendy can move from an initial offer to drawdown of the loan in days, in sharp contrast to the months that can be taken by banks’ credit committees. It is also often able to offer loans secured against properties that the banks would be unable to value confidently.

Lendy’s large and growing user base allows it to fund loans of any size extremely quickly, with loans often oversubscribed by up to five times.


Lendy also continues to see strong growth in its investor base, which is attracted to the platform for a number of reasons.

It has a four-step due diligence process, undertaken by an in-house team, and panels of major law firms and valuers. All loans are secured against UK property lending at a maximum LTV of 70%. Lendy says that returns to investors are between 7% and 12% a year and the minimum investment is just £1.

Liam Brooke, CEO of Lendy, commented: “For some time, we have been stepping in where big banks have neglected property developers. With banks set to limit their property lending even further – we are ready to help fill the funding gap.”

“To pass the £400 million barrier in a little over a year after reaching £300 million is testament to the relationship we have with developers and the quality of the loans we provide.”

“A combination of quick turnarounds for developers, coupled with good returns and excellent due diligence on properties for our investors, is helping Lendy grow at a healthy rate.”

Source: Mortgage Finance Gazette