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!