Saving Stream, the peer-to-peer lending platform has reached a milestone £200m in total lending to property investors in the UK, just before the business’s fourth 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 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, said: “£200m 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.”
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.
Brooke added: “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.”
