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.