Saving Stream breaks quarter of a billion capital barrier

• Growth of P2P fuelling demand from borrowers and investors
• Brexit positive for market

Saving Stream, the peer-to-peer (“P2P”) lending platform, has reached a major milestone at the start of the year, raising over £250 million in total capital from property investors in the UK.

Saving Stream, which is one of the largest P2P secured property lenders in Europe, provides property finance and development loans to borrowers and an annual return up to 12% to investors.

Saving Stream, owned and operated by Lendy Limited, have funded 1000s of projects since it launched in 2012, including residential developments, farmland and commercial projects.

Investment raised through Saving Stream has increased by £150 million to £250 million in the last 12 months.

Saving Stream now have over 13,000 registered users, a figure that has doubled within the last year alone.

Saving Stream offers property investors and developers access to loans that are secured with a legal charge against the value of the property they are investing in. The loans offered never exceed 70% of the property’s value (based on RICS Red Book Open Market Valuation).

Offering loans at this Loan to Value (“LTV”) has meant that Saving Stream have created a generous equity cushion, adding security for their investors. There is also the opportunity for investors to earn up to 12% returns on these secured loans for property purchase and development.

Saving Stream adds that Brexit has had unexpected positive effects on its lending approach. As banks continue to back away from lending against commercial and residential property, Saving Stream has been able to access loans at lower loan-to-value ratios that would previously have been snapped up by banks.

Liam Brooke, co-founder of Saving Stream, says: “Getting to a quarter of a billion pounds is a major milestone for Saving Stream. While we have benefited a lot from the post Brexit reduction in lending from the mainstream banks, we are also attracting new business on the back of our growing reputation for innovative and secure lending and investing.

“We’re delighted to have started the year on such a positive note, after a highly successful year in 2016.

“There is a huge and growing demand for lending from developers who need access to speedier, more personalised finance than traditional lenders can offer. We’re proud to have enabled so many important property developments and generated such excellent returns for investors.”

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 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%. This level is extremely low and it is no surprise that people are looking for a better option.

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

About Saving Stream

Saving Stream is Europe’s largest P2P secured lender, providing property finance and development loans. Since it was founded in 2012, it has provided an annual return of up to 12% to its investors. Over 13,000 individual users have earned a total of £17.3 million through Saving Stream, and more than £250 million of funds has been provided for 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.

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