LENDY, the peer-to-peer property platform, repaid five loans in full in February to investors.
The repaid loans had an average interest rate of eight per cent a year.
They included £2.3m secured against a luxury apartment in Cheyne Gardens, Chelsea; and more than £206,000 secured against a residential property in Wales.
Other loans repaid during the period were being used to fund residential property developments.
The news comes after Lendy announced investors would be given a vote on what happens to overdue loans, such as extensions, recovery strategies and conversions.
Meanwhile, last month the lender said it would add a tab on its website showing partial repayments of loans to make it clearer to investors how funds are being recovered.
Liam Brooke, director and co-founder of Lendy, said recovery is just as critical as origination in the property loan market, and that Lendy’s “number one priority” is to protect investors’ hard-earned capital.
“To underline this commitment, we’re continuing to invest in attracting great talent, improving further our due diligence process and always ensuring our property valuations are undertaken by RICS-registered valuers,” he said. “This provides the assurance that the valuations are both professional and independent.”
Lendy’s loans have a maximum loan-to-value (LTV) of 70 per cent, and the average LTV in 2017 was 44 per cent.
“Investors need to be prepared for losses from time to time, but our conservative approach on LTVs means any losses that do occur in a diversified portfolio will be typically covered by the sale of asset that the loan is secured on,” said Brooke.