Lendy introduces variable pre-funding for loans
PEER-TO-PEER property platform Lendy has started letting investors set separate pre-funding levels for different loans.
Currently investors on the platform can pre-fund loans to guarantee an allocation on each project they are interested in on the pipeline.
Variable pre-funding has now been introduced, enabling investors to set separate pre-funding levels for new pipeline loan rates between seven per cent and 12 per cent.
Read more: Lendy loanbook soars
“Variable pre-funding was essentially introduced to give investors more choice in the way they pre-fund different loans,” a spokesman said.
“It’s also useful for Lendy, as it gives us a good indication of where investor appetite lies. It’s only just been introduced, so the plan is to evaluate its impact on the way new loans fill over coming months.”
From 1 September the platform is also introducing a new process on its secondary market where portions of un-funded loans will be put up for sale before lenders can sell their loan parts.
Currently, when a new loan is not fully funded, the “un-sold” loan parts are placed for sale on the secondary market at the same time as other portions.
But now the un-sold loan parts will now be put on the market first.
Read more: Lendy makes changes to satiate City watchdog
“To adhere to our regulatory responsibilities in not providing credit to cover shortfalls, Lendy will be introducing a new process, whereby unfunded loan availability will appear above loans parts that have been put up for sale by investors,” a note to investors said.
“This is to ensure loans are completely funded, prior to sales occurring.”
The platform has also reported reaching 17,000 users and funding more than £327m of loans.