Landbay granted full FCA authorisation for P2P lending

Landbay granted full FCA authorisation for P2P lending

Peer to peer lending platform Landbay has been granted full authorisation by the Financial Conduct Authority.

The buy-to-let mortgage specialist said this would pave the way for the launch of its Innovative Finance Isa in the new year.

The investment platform was established in 2013, and is driven by peer to peer technology and backed by buy-to-let property.

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Landbay has lent more than £42m since 2014, over 241 loans, and it claims that none are facing repayment difficulties.

John Goodall, chief executive of Landbay said: “For the past 14 months we have worked hard, in collaboration with the regulator.

"As our industry continues to grow and mature, it is only right that regulation should evolve in line, and we welcome the detailed approach the regulator has taken throughout the process.

"This is a significant milestone for Landbay and we look forward to launching our property-backed ISA before the end of the tax year”.

Earlier this year the FCA expressed concern that the Innovative Finance Isa, which was launched in April, might be encouraging people who don't understand crowdfunding to put their money into it.

The launch of the Innovative Finance Isa was mired in criticism, with 80 peer-to-peer lending platforms still waiting for approval from the Financial Conduct Authority a fortnight after the Isa had been officially introduced.

This prompted HM Treasury's head of business lending to concede that the Isa had "not exploded" in the way the industry thought it would.