<
p>It has been a year since P2P lender Funding Circle launched into property finance, where more than £50 million has already been lent.
Launched five years ago, the P2P lender saw that there was a huge demand from business owners who wanted to develop or invest in property, and so decided to build an experienced property finance team to cater for this demand.
Funding Circle has revealed that, since last year, investors have lent over £50 million on property finance loans, a staggering 85 per cent of which was for residential development finance, helping small property developers supply more than 400 homes across the UK.
The lender added that there was a huge funding gap in the market for residential development finance, as banks were still not lending in the ‘less than £5 million’ space.
“Investors at Funding Circle are lending a maximum of £3 million per development scheme. We are facing a huge housing supply gap which we know will only partially be met by big housebuilders,” said Luke Jooste, Head of Real Estate Finance at Funding Circle.
“In order to ensure we have enough homes over the next period, we need small-scale developers, and they need fast and easy access to finance which they continue to struggle to access via traditional means.
“On the £50 million lent out so far there have been no losses, no late payments and no defaults”.
Investors of Funding Circle are lending around £40 million a month.
It has been a year since P2P lender Funding Circle launched into property finance, where more than £50 million has already been lent.
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