How it works

We secure loans against professionally valued UK property

Saving Stream is a peer to peer investment platform launched in 2013 by Lendy Ltd. Peer to Peer lending, also known as Person to Person or P2P lending allows investors to finance development projects and property purchases. Saving Stream ensures this process is fast, simple and secure, and delivers a fixed interest rate of up to 12% per year. All proposals are fully assessed by our experienced credit committee before being made available for investment.

Lending is secured with a legal charge, and loan amounts do not exceed 70% of the Open Market Value. This means that in the event of a default there is sufficient equity to allow loan funds to be recouped with the sale of the security. A substantial Provision Fund is also maintained in case of shortfalls. Since 2013 over 10,000 investors have earned a total of £20,512,728 in interest, and we have a 100% success record in repayments.

Not convinced?

Lending Explained

Borrower A - Explained

When a borrower approaches our parent company Lendy Ltd they begin with a full and in-depth assessment of the project. Professionally qualified chartered surveyors are instructed to value the property being used as security, to ensure any loan is a maximum of 70% of the Open Market Value. If the borrower and security meet the criteria the loan is secured with a legal charge for an average term of 6 months. The borrower can repay the loan before the end date.

Investor A - Explained

Browse the Saving Stream portfolio and select ‘start investing’ when you see a project you wish to support with peer lending. It takes minutes to set up an account, add funds and confirm the amount you wish to invest. You begin earning interest of up to 12% per year immediately, with loans typically repaid after 6 months. Interest earned is paid into your account monthly and at the end of the term your initial investment and any outstanding interest is paid into your account for withdrawal or further project funding.

FAQS

Frequently Asked Questions

How much can I invest?

We do not have a maximum amount you can credit to your account. The maximum amount of investment you could make to a project is 100% of the required loan. There is no minimum investment amount. Funds that you credit to your account but are not committed to a project can be withdrawn at any time.

What return can I expect?

Once you commit to invest in a project you will begin earning up to 12% annual interest on your capital immediately. This is credited to your account at the end of each month. At the end of the term of the loan your initial investment, along with any outstanding interest earned, is made available in your account for withdrawal or further project funding.

When will my original investment be returned?

Your initial investment and any outstanding interest is credited to your account when the loan is fully repaid. The average loan term is 6 months, however borrowers can repay the loan before the agreed end date. Once the loan is repaid in full we ensure your funds are returned immediately, allowing you to withdraw the balance or commit to new peer to peer finance.

What happens to my money?

When you open an account with Saving Stream you can choose to invest in any loans, subject to availability. On making an investment you are expected to arrange for Saving Stream to receive cleared funds within 2 working days, after which Saving Stream has discretion to cancel the loanpart allocated to you should it so wish. Funds not invested in a loan will be held in the Saving Stream Client Bank Account with Barclays Bank PLC. Interest is not paid on any such balances. When the loan is drawn down, all relevant funds are then transferred out of the Saving Stream Client Bank Account and passed to the borrower or their solicitors.

Where is the risk?

We make every effort to minimise the risks for our investors and to ensure, where possible, that all investments are repaid in full and on time. To date we have a 100% success rate with our repayments. In the event that a borrower defaults on their loan we have the following protection in place;

  • All loans are secured with a legal charge, which means the property can be sold if the borrower defaults on the loan.
  • Loans do not exceed a maximum of 70% of the Open Market Value. This means that if the borrower cannot repay the loan it is highly likely that we will be able to recoup all funds from the sale of the security, as there is a substantial amount of equity.
  • In the unlikely event that we are unable to recoup all the funds from the sale of the security we maintain a Provision Fund to allow us to compensate investors should there be a shortfall.

We feel it is important to make you aware that your capital is at risk and interest payments are not guaranteed if a borrower defaults, however we feel confident that we have a thorough and robust system in place to protect all Saving Stream investors.

Please see our full risk statement here.

What are the fees?

Unlike many other Peer to Peer lenders we do not charge our investors any fees or commission on the interest you earn, so you keep 100% of your earnings. There will also be no tax deducted from any amounts you receive. There are fees payable by borrowers to our parent company Lendy Ltd when a loan is made.

What do you loan against?

Borrowers approach our parent company Lendy Ltd with an extensive range of property projects including purchases, developments, refurbishments and commercial premises acquisition. If approved the loan is secured by a legal charge on the property, which is valued by a professionally qualified Chartered Surveyor. The surveyors all hold Professional Indemnity Insurance to protect against an inadequate service, and the loan amount does not exceed 70% of the property value.

What if I change my mind or wish to release capital before the loan is repaid?

We offer a facility to sell any investments you have made. You can choose to put all or part of your original investment amount up for sale, which will update the amount available for other investors. If the total loan amount has already been committed by Saving Stream investors, the project will return to the Available Loans section with your chosen amount available for investment. This will not affect the borrower and once the whole amount has sold we will update your account balance accordingly.

Selling your loan parts on the secondary market relies on an investor buying your loan part. Although average loan part selling time on the Saving Stream platform is less than 24 hours, this is not guaranteed and you may experience a delay in selling your investment.

Can I earn rewards for referrals?

When you have set up an account you will be given a personalised link to share with friends and family, or to use on your website, blog or social networks. When a new investor joins Saving Stream using your link we will credit your account with 1% of their initial investment as a thank you.

How do Saving Stream make money?

Since it’s launch by Lendy Ltd in 2013, Saving Stream has made its profit from the difference in interest rates charged to borrowers and paid to investors. All Saving Stream investors receive a fixed monthly interest amount of up to 1%, whereas Lendy Ltd charges interest at 1.5% per month on average.

We feel this is a fair margin as the administration costs that are associated with sourcing new projects for investment, and ensuring all property is secured with a legal charge, are substantial.

Can I invest via a SIPP or a SSAS?

Yes you can. For more information about investing via a SIPP or a SSAS please visit the SIPP page.

What will happen to my investments and available balance if I die?

If you were to die Saving Stream would seek instructions from the executor/administrator of your estate as to what to do with your investments and where to transfer your available balance. According to the instruction Saving Stream will place your investment loan parts for sale on the secondary market, Saving Stream charges a small administration fee for this.

In the event of the death of an active investor Saving Stream will first need to be provided with a certified copy of the death certificate before we can formally acknowledge the death of the investor.

Upon receipt of the death certificate the executor/administrator of the deceased’s estate will be sent a request to provide either a certified copy of a Grant of Representation (i.e. Grant of Probate, Grant of Letters of Administration or Certificate of Confirmation), be sent an Executor/Administrator Instruction Form for completion, and be sent a valuation and breakdown of the account.

Once the completed Instruction Form has been returned to Saving Stream along with a Grant of Representation the instructions will be carried out once any administration charges have been paid.

Any available balance will be transferred to an account specified in the Instruction Form. Funds gained from the sale of loan parts will be transferred to this specified account on the first working day of each month. Money entering the account from the return of capital on the completion of a loan, or money entering the deceased’s account as interest payments will also be transferred to the specified account on the first working day of each month.

Once all available balance has been transferred and all loan parts either sold or repaid the account will be closed.

Overview

Provision Fund

To ensure the risk to Saving Stream investors is kept to a minimum the shareholders of Lendy Ltd, the company behind Saving Stream, maintain a Provision Fund. By ensuring the maximum Loan to Value of the property is no more than 70% it should mean that, if a borrower defaults on a loan all funds will be recouped upon the sale of the security. The Provision Fund exists in order to help compensate investors in the event that the sale of the security property does not result in full repayment of the loan.

The Directors of Lendy Ltd are also the directors of the Provision fund; a UK based company called Lendy Provision Reserve Ltd. Saving Stream investors can make an application to the Provision Fund for compensation if their initial investment cannot be fully repaid due to a shortfall in the sale of the security.

The Provision Fund does not guarantee loans or provide insurance against loss. In the event of a shortfall The Directors will consider any losses made by investors and may grant compensation at their discretion. You should be aware that your capital is at risk and interest payments are not guaranteed if a borrower defaults.

The Fund will aim to have a minimum balance of 2% of the total live loan amount at any time. Every time a new loan is made a proportion of the fee charged to the borrower is paid into the Provision Fund (the amount is dependent on the loan size). If the Provision Fund is used to cover a shortfall in asset disposal, then it may take time to top the Provision Fund back up from company cashflow.