Lendy secures full FCA authorisation

LENDY has become the latest peer-to-peer lender to achieve full authorisation from the Financial Conduct Authority (FCA).

The property loans platform had launched in 2012 and was operating on interim permissions while the FCA assessed its application.

Its loanbook has reached more than £400m with 21,500 investors and the platform is promising more products now that it has full regulatory permissions.

“It has been a long and sometimes challenging journey, which has involved a detailed review of our processes and policies and has helped us mature into a stronger and more robust business,” Liam Brooke, chief executive of Lendy, said.

“This is a validation of our efforts to move from a young start-up to an established mainstream lender, with the ability to disrupt the banking model for the benefit of clients, and design new investment products and services.”

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Brooke described P2P property lending as “critical” in tackling the UK’s housing shortage.

“P2P lending has grown in popularity over recent years, partly as a result of high street banks becoming increasingly risk averse and reining in lending following the economic crash in 2008,” he added.

“Investors are now seeking higher returns on their investments than are available through most traditional investment vehicles.

“Lendy’s bridging and development loans have helped to fund hundreds of property developments, including major residential conversions, and commercial and industrial property – developments that simply wouldn’t have been delivered otherwise.

“This kind of finance is critical to tackling the UK’s housing shortfall, with house building now at its lowest rate since the second world war.”