Property Platform Lendy has received full authorisation from the Financial Conduct Authority (FCA).
Lendy, which launched in 2012 and has to date facilitated over £400m in lending, has 21,500 registered investors and will continue with its existing investments, but through the new mandate will look to innovate new products and services in line with its full FCA permissions.
Liam Brooke, chief executive of Lendy, said: “We’re very pleased to have been given full authorisation by the FCA. It has been a long and sometimes challenging journey, which has involved a detailed review of our processes and policies and has helped us mature into a stronger and more robust business.
“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.”