Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_1124065796
July 5 2018

Lendy loanbook hits £400m as banks withdraw from development finance

Marc Shoffman Industry News, News Lendy, Liam Brooke, p2p, property

LENDY has reached £400m of loans, boosted by banks withdrawing from development finance, the peer-to-peer platform has announced.

The property lender said that overall lending to small developers had been cut by banks, which had helped grow its pipeline.

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

“For some time, we have been stepping in where big banks have neglected property developers,” Liam Brooke, chief executive of Lendy, said.

“With banks set to limit their property lending even further – we are ready to help fill the funding gap.

“To pass the £400m barrier in a little over a year after reaching £300m 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.”

It comes after Lendy questioned the strategy of banks after it emerged that there has been a 15 per cent jump in approvals for “high-risk” mortgages.

Lendy said it makes no sense that lending to homeowners was being expanded while the provision of funds to developers dwindles.

According to Bank of England guidance, mortgages are considered “high-risk” if they are lent at 4.5 times or more of the applicant’s salary.

Analysis of the Bank’s data by Lendy found the number of “high risk” mortgages approved by banks jumped 15 per cent to 101,380 in 2017, up from 88,057 in 2016.

Read more: Lendy: Carillion collapse dampened commercial property lending

Read more: Lendy to let investors track partial repayments of loans online

Banks complacent in face of fintech challenge City investors expect online lenders to drive growth in asset-backed securities

Related Posts

Dog at school

Industry News, News, Top 3

Five key takeaways from the fintech review

Closed sign

Industry News, News, Property, Top 3

The House Crowd goes into administration

investing

Industry News, News, Top 3

Government urged to modify EIS to promote lending

Popular posts:

  • RateSetter to stop investment withdrawals from 26 March
  • UK Finance calls for global fintech cooperation
  • Metro Bank plans to offer RateSetter lending through…
  • RateSetter confident of growing Metro Bank’s…
  • The House Crowd goes into administration
  • FCA puts the brakes on Buy2Let Cars
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by