Landmark year for P2P platform Saving Stream as value of outstanding loan book grows by 126% in 2016

– User base doubled in a year

– Reduced lending by banks boosts demand post Brexit

A resilient property market and a reduction in bank lending to property developers and purchasers helped drive Saving Stream, the peer to peer secured lending platform, to a landmark year in 2016.

In its 2016 Annual Review, Saving Stream says that, over the last year, its outstanding loan book increased by 126% from approximately £73m in December 2015 to £165m in December 2016.

Saving Stream adds that its loan portfolio has also significantly increased, having now lent over £250m to property developers and purchasers. In addition, £60m has been repaid to investors. The platform itself has grown and now has over 13,000 registered users.

Saving Stream is one of Europe’s largest and fastest growing P2P secured lenders, providing UK property finance and development loans to a broad range of borrowers and project types. Saving Stream also offers users opportunities to receive an estimated future gross annual return of up to 12%, before tax, on loans they make through the platform.

Saving Stream says that one of the key drivers of Saving Stream’s strong performance in 2016, particularly in the second half of the year, was Brexit.

In the wake of the referendum vote, traditional lenders pulled back even further their lending to the property sector, which meant that property developers and investors in need of capital turned to alternative providers such as Saving Stream for loans. This gave Saving Stream access to lower loan-to-value (LTV) deals that would previously have been snapped up by banks.

Saving Stream adds that bank lending to the UK property sector has halved in the last two years, following from £30.5bn in October 2014 to £15.2bn in October 2016 (source: Bank of England).

Some of the biggest peer to peer deals nationwide:

• £15m development loan to fund the conversion of Wolverhampton’s iconic Sunbeam motorcycle factory into apartments
• £7.92m bridging loan against a commercial building in Kentish Town, London.
• £5.6m loan to purchase 900 acres of farmland as part of project to develop multi-purpose commercial and residential units
• £4.7m office to residential conversion in Liverpool’s business district

Liam Brooke, Co-Founder of Saving Stream comments: “2016 has been a year of rapid but sustainable growth for Saving Stream; we grew in every aspect of the business, from staff numbers through to the amount lent. Our simple and straightforward model allows us to offer borrowers quick decisions on their loans, whilst investors can take advantage of great lending opportunities with ease, using the online platform.”

“Our user base has expanded substantially, particularly amongst 18-40 year olds, as the younger generations look beyond traditional investment products towards more innovative options.”

“Brexit meant that Saving Stream had access to loans at lower LTVs as bank lending to the property sector was reduced further – giving our investor base some fantastic investment opportunities.

“2016 was a great year for Saving Stream and we expect 2017 to be just as positive. We will continue to invest in new technologies, services and talent so as to be able to offer borrowers even better service, and our investors even more opportunities to invest.”

Saving Stream adds that it has made several important hires over the last year for positions including Head of Credit, Head of Compliance and Development Finance Director, as Saving Stream gears up for its next stage of development.

ENDS

Notes to editors

Alternative finance providers, such as P2P and other crowdfunding platforms, are increasingly stepping into the gap created by banks’ withdrawal. They are giving developers the opportunity to get their projects off the ground in a sensible timeframe.

Peer to peer lending is beneficial for investors as well as developers, and people are increasingly turning to peer to peer in order to obtain a better yield from their investments in the current low interest rate environment.

For example, the average cash ISA at a bank now only offers annual returns of 0.74% (source: Bank of England). This level is extremely low and it is no surprise that people are looking for a better option.

The outlook for the UK property market is good. Despite banks’ withdrawal from lending, it is important that developers realise there are other options available to them. P2P lending allows important development projects to go ahead, and is beneficial to registered investors.

About Saving Stream

Saving Stream is one of Europe’s largest P2P secured lenders, providing UK property finance and development loans. Since it was founded in 2012, it has grown to over 13,000 registered users. Investors on the Savings Stream platform have enjoyed a gross annual return of up to 12%, before tax, and received a total of £17.3 million in interest. Since inception, more than £250 million of funds has been provided for UK property investments.

All loans made through Saving Stream’s platform are secured by legal charge over UK property and loan amounts never exceed 70% of the properties’ Open Market Valuations undertaken by independent valuers; however, investor’s capital is at risk should a borrower default. Funds lent through a peer to peer website are not covered by the Financial Services Compensation Scheme (FSCS), although Saving Stream maintains a substantial discretionary provision fund to assist in making up any recovery shortfalls.

Whilst no Saving Stream investor has been subject to any loss of capital, past performance is not a guarantee of future performance. Please obtain independent advice if you are in any doubt as to whether this platform is suitable for you or if you require tax advice. Please see our full risk assessment. Unallocated investor funds are held in a segregated client money bank account.

Saving Stream is a trading name of Lendy Ltd, a company registered in England and Wales under number 8244913 with its registered office and principal place of business at Brankesmere House, Queens Crescent, Southsea PO5 3HT. Lendy Ltd is authorised and regulated by the Financial Conduct Authority (FCA), number 654326, and is registered with the Information Commissioner’s Office (ICO), number Z3404040.