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Lendy: Could it be the pension solution for you?

Is the peer-to-peer lending service the right provider for your pension?

Lendy is a peer-to-peer lending service tailored to meet the needs of the property development market. The service is exclusively for loans backed by property, and is an effective way for developers to raise capital, as well as for investors to get high returns.

Keep on reading to find out more about the property-backed peer-to-peer lender to see if it offers the right pension option for you.

What do Lendy do?

Lendy operate a peer-to-peer secured property lending platform, and specialise in proving loans to property purchases and projects. The loans on the platform are all backed by properties and property developments, and allow anyone to start investing in property.

The company was incorporated in 2012, and has overseen the investment of over £360m since then. Lendy now has more than 19,000 registered users, and are the leading peer to peer secured property investment provider in Europe.

warning iconWarning: The value of investments can go down as well as up so you may not get back the money you invest. Please ensure you understand the risks.

How does it work?

Lendy have a model that allows property developers to borrow money against professionally valued property. Investors can then choose which projects to invest in, providing all or some of the loan amount. The borrower benefits from a competitive loan, while the investor earns interest on their investment.

Lendy SIPP

Lendy allow you to invest in the projects on their platform through a SIPP. The process for lending through Lendy from a SIPP is as follows:

  1. Contact details. Lendy will give you the details of SIPPclub, who will discuss the SIPP and SSAS options and costs with you.
  2. SIPP operator. SIPPclub will not offer you advice, but should point you towards a SIPP operator.
  3. Creating the SIPP. If you need assistance, SIPPclub will help you create a new SIPP, where you can transfer old pensions to, or start investing from.
  4. Lendy account. Once your SIPP has been created, SIPPclub will help you set up a Lendy account, and will instruct you how to use it.

Saving for retirement using a SIPP is a great way to take control of your pension, and Lendy offer you a great deal of autonomy on your investment decisions. Below are some of the benefits of using Lendy to save for your retirement:

  • Competitive returns. You can earn as much as 12% interest p.a.
  • Tax free. The interest on your pension can be earned and reinvested tax free
  • SIPP or SSAS. You can lend through Lendy using either a Self Invested Personal Pension or a Small Self-Administered Scheme
  • Provision fund. Your investments are protected by Lendy’s provision fund.

What is a provision fund?

Provision funds were introduced to peer-to-peer lending by RateSetter, and are a way of keeping investors money safe.

It is essentially a pot of money which works as a buffer against poorly performing loans, so that investors don’t lose out on repayment fees.

How safe is my investment?

Trusted by thousands of customers, Lendy is a secure company that has been managing investments for 6 years.

Lendy is also authorised and regulated by the Financial Conduct Authority (FCA) and is bound by their rules and regulations in the conduct of the investment business.

However, as with all investments your capital is at risk, and you should seek financial advice before taking out a SIPP.

Lendy is also not covered by the Financial Services Compensation Scheme (FSCS).Back to top

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