LENDY has suspended investment into nine loans from a single borrower on its peer-to-peer property lending platform as it claims to be making progress in getting lenders repaid.
The borrower, whose portfolio includes a site in Bradford, has committed to help ensure investors get “the best recovery,” Lendy said.
He has been in talks with the platform since at least December regarding refinancing or selling his property assets so the loans can be repaid.
“We have had an important meeting with the borrower to discuss the next steps and he has shown his commitment to work with Lendy to ensure that the best recovery is made for all investors across all the loans involved,” Lendy said in an email to investors.
“We expect to be able to give you further detail on these loans before the end of the week.”
It is the latest disclosure on how Lendy is chasing bad loans amid investor concerns about rising arrears and comes after a separate borrower threatened to sue both the platform and its investors for £10m, claiming Lendy unfairly put £8.2m worth of loans into default.
The claim – which originated in response to Lendy beginning recovery proceedings against the borrower – has been described by the platform as “vexatious” and with “little prospect of victory.”
The platform said last week that it has made board changes to improve its governance and would improve its communication with investors.