Saving Stream, the P2P property lending platform, breaks through £200m lending barrier
- Developers in need of finance benefiting from growth of P2P
- Opportunity for investors to take advantage of this demand
Saving Stream, the peer-to-peer lending platform has reached a milestone £200 million in total lending to property investors in the UK, just before the business’s 4th anniversary.
Saving Stream, the largest property P2P lender in Europe, arranges short term finance for property purchase and development as bridging loans, from funds provided by their investors. Saving Stream have funded over 130 projects since it launched in 2012, including residential developments, farmland and commercial projects.
“Lending through Saving Stream has increased by about 140% in the last 12 months to £140m million in 2016.”
Saving Stream have recently reached the 11,000 investor landmark, 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 they offer never exceed 70% of the property’s value (based on RICS Red Book Open Market Valuation).
Offering loans at this 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.
Liam Brooke, Co-founder of Saving Stream says: “£200 million in lending is a significant landmark for Saving Stream.”
“Banks have been reducing their lending to property developers and that has accelerated since the Brexit Vote. This reduction in supply of funding from banks means we are being offered more attractive loans at lower LTVs.”
“We’re delighted to have enabled many important property developments and generated excellent returns for investors. There is huge demand for lending from developers who need access to speedier, more personalised finance than traditional lenders can offer.”
The Brexit vote and the investment environment
Alternative finance providers, such as P2P 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.
Liam Brooke says, “Peer-to-peer lending is beneficial for investors, as well as developers, and people are increasingly turning to peer-to-peer in order to get the most out of their money.”
“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 secured P2P lender, investing in property development and purchase. Since it was founded in 2013, it has provided an annual return of up to 12% to its investors. Over 11,000 individual investors have earned a total of £10.5 million through Saving Stream, and more than £130 million of funds has been provided for property investments.
Saving Stream’s lending is secured with a legal charge, and loan amounts never exceed 70% of the properties’ Open Market Valuations. A substantial discretionary provision fund is maintained to protect against shortfalls. Saving Stream is regulated by the Financial Conduct Authority.
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