Lendy review

2 star rating

What we like

What we don't like

Key facts

  • Lendy offers loans with high interest rates - up to 12%
  • The platform is large and has good dealflow
  • Independent valuation reports are provided for each collateral
  • It is possible to invest large sums (if you have them!)
  • We have concerns about the rates of loan defaults. Default rates have been increasing significantly over the last 12 months.
  • The website is satisfactory but lacks some of the more advanced features of other platforms, such as loan filters
  • Many of the loans are used for development purposes, which is a higher level of risk than bridge or mortgage loans
  • Loans require careful due diligence prior to investing as the loans and collaterals valuations tend to be complex and vary significantly
  • We have some concerns over the quality of loan underwriting and valuations. Some defaulted loans appear to be going to generate unexpectedly high losses
  • Customer service team appears to be under-resourced, leading to poor experiences for investors
  • Loan types - UK secured bridge loans and development loans
  • Collaterals - Primarily UK commercial and residential real estate
  • Protection fund? - Yes (small)
  • Autobid available? - Yes
  • Secondary market? - Yes
  • Is platform profitable? - Yes

Conclusions on Lendy

12 months ago, Lendy was perceived as having a relatively good lending record, and was growing quickly. Since then things have changed for the worse for both Lendy and its investors. Unfortunately, default rates have increased dramatically, and are now amongst the highest of all the British P2P sites. Some of the loans that have defaulted have been extremely problematic, with significantly lower recoveries from collateral sales than were expected. Some legal issues have arisen on other loans which raise questions around the quality of the due diligence and conveyancing work performed. Many investors have placed their loans for sale on the secondary market of Lendy, but there now appears to be much more demand to sell than to buy. Lendy has also still not received its full authorisations from the FCA. This makes it difficult to recommend Lendy to new investors currently. We think there are better alternatives currently, such as Assetz Capital, Bridgecrowd and Kuflink. 

£50 welcome bonus for new Lendy investors

Lendy is offering a £50 bonus for new investors who invest via Explore P2P.  All you need to do is visit Lendy via this link and create an account.

A minimum of £1,000 must be invested for a minimum of 3 months. Taking advantage of this offer boosts your early returns and also helps to contribute towards the running costs of this site.

Our legal page contains disclosures and the full terms and conditions of the use of the ExploreP2P site. 

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