How it works

We secure loans against professionally valued UK property

Our peer to peer investment platform launched in 2012. Peer to Peer lending, also known as Person to Person or P2P lending allows investors to finance development projects and property purchases. Lendy ensures this process is fast, simple and secure, and delivers a fixed interest rate of up to 12% per year. All proposals are fully assessed by our experienced credit committee before being made available for investment.

Lending is secured with a legal charge, and loan amounts do not exceed 70% of the Open Market Value. This means that in the event of a default there is sufficient equity to allow loan funds to be recouped with the sale of the security. A Provision Fund is also maintained in case of shortfalls. Since 2012 thousands of investors have earned over £25,059,972 in interest, and we have a 100% success record in repayments.

Not convinced?

Lending Explained

Borrower A - Explained

When a borrower approaches our parent company Lendy Ltd they begin with a full and in-depth assessment of the project. Professionally qualified chartered surveyors are instructed to value the property being used as security, to ensure any loan is a maximum of 70% of the Open Market Value. If the borrower and security meet the criteria the loan is secured with a legal charge for an average term of 6 months. The borrower can repay the loan before the end date.

Investor A - Explained

Browse the Lendy portfolio and select ‘start investing’ when you see a project you wish to support with peer lending. It takes minutes to set up an account, add funds and confirm the amount you wish to invest. You begin earning interest of up to 12% per year immediately, with loans typically repaid after 6 months. Interest earned is paid into your account monthly and at the end of the term your initial investment and any outstanding interest is paid into your account for withdrawal or further project funding.

How it works

FAQs and Glossary


Provision Fund

To ensure the risk to our investors is kept to a minimum the shareholders of Lendy Ltd, the company behind Lendy, maintain a Provision Fund. By ensuring the maximum Loan to Value of the property is no more than 70% it should mean that, if a borrower defaults on a loan all funds will be recouped upon the sale of the security. The Provision Fund exists in order to help compensate investors in the event that the sale of the security property does not result in full repayment of the loan.

The Directors of Lendy Ltd are also the directors of the Provision fund; a UK based company called Lendy Provision Reserve Ltd. Investors can make an application to the Provision Fund for compensation if their initial investment cannot be fully repaid due to a shortfall in the sale of the security.

The Provision Fund does not guarantee loans or provide insurance against loss. In the event of a shortfall The Directors will consider any losses made by investors and may grant compensation at their discretion. You should be aware that your capital is at risk and interest payments are not guaranteed if a borrower defaults.

The Fund will aim to have a minimum balance of 2% of the total live loan amount at any time. Every time a new loan is made a proportion of the fee charged to the borrower is paid into the Provision Fund (the amount is dependent on the loan size). If the Provision Fund is used to cover a shortfall in asset disposal, then it may take time to top the Provision Fund back up from company cashflow.


What our investors say