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Peer2Peer Finance News | January 18, 2019

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Lendy considers offering auto-invest products

Lendy considers offering auto-invest products
Marc Shoffman

LENDY is seeking views from investors on the introduction of an auto-invest product.

The peer-to-peer property lender has issued a survey to its customers to find out their views on a product that would self-select loans for lenders.

It currently only offers manual lending.

Respondents are asked for their views on a three-year auto-lending product offering returns of six percent, or five years at seven per cent.

Read more: Lendy has repaid £100m to investors this year

Customers were also asked if they would consider investing through an ISA wrapper or pension.

“Over recent times we have received a number of requests for new-style investment vehicles, with particular interest in an auto-invest product, which would self-select loans available on Lendy’s platform to provide a diversified portfolio,” a Lendy note said.

“This service would mean investors would not have to choose or manage individual loan parts but would still benefit from Lendy’s robust due diligence procedures and responsible lending policies. The auto-invest product might therefore appeal to investors who are happy for Lendy to invest on their behalf.

“The rate would be fixed over the term of the investment, typically three or five years, and would aim to be highly competitive with other fixed interest offerings in the P2P lending market. Interest would be paid quarterly, throughout the life of the investment, with capital always employed.”

Lendy recently announced the repayment of a £7.92m loan, one of the largest seen in the UK’s P2P sector to date. The facility had been repaid ahead of schedule and delivered annual returns of 12 per cent to investors.

Read more: Lendy: Lack of bank funding has hit London housebuilding