P2P Money Blog

Lendy have introduced two new products under the Lendy Weath brand for those wishing to lend a minimum of £50,000.  The rates are 6% AER for 60 day access and an introductary 10% AER for 365 day access.

Here is the email sent to lenders:

As you would have read, Lendy are launching two new products under the new brand of Lendy Wealth at Lendy Cowes Week this month. Initial interest has so far proved very strong.

These new accounts are designed for sophisticated investors, who are typically asset rich but time poor, and provide a market-leading interest rate through investment in a diversified portfolio of secured property loans managed by a dedicated account manager.

These two new products are:

• The Lendy Wealth60 account earning up to 6% pa from a 60-day access account
• The Lendy Wealth365 account earning up to 10% pa from a 365-day access account*

For more information on our brand-new products, please go to:

lendywealth.com

You can also download a copy of the Lendy Wealth brochure here.

Further products, including an IFISA, will be introduced shortly.

* IMPORTANT ? the Wealth365 has an introductory rate of 10%.

These products have received some criticism on both the P2P Frank Discussion and P2P Independent Forum.  Here are a selection of posts:

However, having experienced [Lendy] over the last 2 years, why would I? Why would anyone? Where is this ?strong interest? they refer to coming from? They?re offering up to 10%, with ?up to? being the important terminology. There?s no way [Lendy] can return 10% based on their current performance. Also, once a loan defaults it cannot be sold and experience suggests it often takes much longer than 365 days to resolve so how are they going to give people their money back after 365 days?

Could be interesting to see if those in 365 are actually able to access their cash quicker than the rest of us given all the caveats about "normal market conditions".....
My guess would be this is their plan to refocus on BHs - at least now they have plenty of SM availability to satisfy them! With the FCA's general nervousness around retail my bet is they'll wind that side down if they can get enough BHs in...
Is it just me that thinks they sound a little confused about the differences between sophisticated and HNW? (in the B&C article anyway not read everything else yet)
Since it's apparently "introducer only" and I've not spoken to my IFA in a while I may try have a chat with him and see if views on p2p that side of the fence are changing at all

In the meantime, happy to share my bargepole!

Lendy have announced that they have obtained full authorisation from the FCA.  This was confirmed in an email sent to lenders Liam Brooke, CEO, Lendy Ltd.

I?m pleased to announce that today we?ve been granted full authorisation from the UK regulator, the Financial Conduct Authority (FCA).

This is a validation of our efforts to move from a young start-up to an established mainstream lender, with the ability to disrupt the banking model for the benefit of clients, and design new investment products and services.

Peer-to-peer lending has grown in popularity over recent years, partly as a result of high street banks becoming increasingly risk averse and reining in lending following the economic crash in 2008. Investors are now seeking higher returns on their investments than are available through most traditional investment vehicles.

Lendy?s bridging and development loans have helped to fund hundreds of property developments, including major residential conversions, and commercial and industrial property ? developments that simply wouldn?t have been delivered otherwise. This kind of finance is critical to tackling the UK?s housing shortfall, with house building now at its lowest rate since the second world war.

Lendy are one of the last peer-to-peer lending platforms to have operated under interim permission from the FCA.

A new peer-to-peer lending platform, Loanpad, is offering a 20% interest rate boot until February 2019 for the first 100 new lenders.  The platform offers daily interest and daily diversification and will be ISA eligible.

Lenders are able to download BondMason's Direct Lending in the UK report.

https://www.bondmason.com/blog/direct-lending-uk-2018

A firm of insolvency practitioners, Moorfields Advisory Ltd, have offered to review the report of the administrators of Collateral which is due out on the 22nd June, and to answer any questions.  The company have offered to provide this service free of charge to lenders.

 Here is the post from Moorfields Advisory:

Here at Moorfields Advisory Ltd, a firm of Insolvency Practitioners who have experience in advising P2P firms, we have been contacted by MoneyThing and have been discussing internally the difficulties lenders / creditors potentially face following the administration of Collateral UK Ltd. We are advised that the current Administrators, BDO, are proposing to circulate a report on 22 June 2018 and from the posts we have seen to date, creditors will be taking a keen interest in their latest update. We would be willing in the first instance to review the report, then answer questions that might arise as common themes. Therefore, please raise your queries via this thread between 22 June 2018 and 29 June 2018, after which we will be happy to summarise the report and answer those common concerns raised during that period.

We join MoneyThing in expressing our sympathy for the lenders? situation and we hope to be able to provide some practical assistance. We can confirm that we will not charge for conducting this review.

The thread that is mentioned is on the P2P Independent Forum: http://p2pindependentforum.com/post/272588/thread