Lendy returns £1.5m repayment to P2P investors
Lendy has returned £1.46m to peer-to-peer investors on a loan secured on the development of a large detached home near Preston.
The development loan was used to fund the building of the home, which is being built on half an acre of cleared land in New Longton. A small portion of the loan was used to refinance an existing debt on the site itself.
Liam Brooke, chief executive of Lendy, said: “This is another significant repayment and adds to the more than £10m we have repaid to investors over the previous three months.
“We have invested heavily in our due diligence processes in the last year to make sure we can source more of this kind of high-yielding loan for our investors that have a sensible balance of risk and reward.
“High-yielding loans obviously carry risk with them but can provide an important performance boost to a diversified portfolio.
“This represents a great start to September for Lendy, following on from our FCA authorisation in July.”
New Longton is five miles from Preston city centre and serves as a commuter village for Preston, Lancaster, and Greater Manchester. The village is home to agricultural and horticultural industries.
The loan has a loan to gross development value (GDV) of 59% with an interest rate paid to investors of 12%. The borrower has successfully refinanced this loan with another lender.
Lendy has repaid 20 loans in full this year which, together with partial repayments, has meant over £39m has been repaid to investors. Lendy’s 21,800 investors have earned over £43.3m in interest since 2012, against £413m that has been invested.