On our path to full authorisation by the Financial Conduct Authority (FCA), we are making some changes to our lending model. Much like many other peer-to-peer platforms, we hold ‘Interim Permissions’ with the FCA and these changes will help us provide a better offering to our lenders.
We're making changes to our lending model.
So what are these new changes?
The old model:
- Each lender contracts (via the Exchange) with Relendex Lending Limited (RLL).
- RLL then lends on the same amount to an ultimate borrower under terms mirroring individual lender contracts.
- Relendex Security Trustees Limited (Security Trustees) takes security over the borrower’s asset, held in trust for the benefit of the lender group.
Our new model:
- Lenders bid on the live auction on the Relendex platform exactly as before.
- Relendex Lending Limited (RLL) issues a Loan Facility Agreement (LFA) to a borrower.
- When the auction fills ups, the loan is then novated (transferred) to individual lenders for their particular loan parts. In accordance with the FCA’s requirement and as a result of this process, lenders will be lending directly to the borrower for the amount they bid.
- The role of the Security Trustees acting for the benefit of the lender group remains unchanged.
Answers to questions such as what is ‘novation’ and why it is necessary can be found on our FAQ page.
For anything we haven’t thought of, please send an email over to This email address is being protected from spambots. You need JavaScript enabled to view it..
We hope that this new lending model demonstrates the open and transparent nature of our platform. And as the peer-to-peer (P2P) industry grows from strength to strength, that Relendex is committed to providing both lenders and borrowers with a compliant yet innovative solution to secured lending in the commercial and residential property space.
