19 July, 2016

Saving Stream Investment Review

Saving Stream review

Saving Stream, founded in 2013, matches investors with property borrowers. These borrowers seek to develop and refurbish property, as well as acquire private and commercial property. Saving Stream offer a high-interest rate of 12% per annum, allowing you, the investor, to lend a minimum of £100 and manually select the property projects you wish to invest in.

If you are an investor seeking a high-rate return and have the capability of performing your own due diligence, bearing the full risk with no automatic diversification, then a Saving Stream investment may be worth researching.

Be conscious, however, Saving Stream experienced its second default in history this past week. The management team is in the process of recovering the debt. More below.


*statistics correct at time of publication (06/16)

Total amount lent:£139,866,370

No. investors:8,699

Security held:£192,545,000

Live loanbook:£105,528,063

Provision fund:£2,110,561

Provision fund is maintained at a level where it can cover 2% of live loanbook at any time. This is correct given current live loans and provision fund figures.

In default:£1,599,892

No. investors impacted:1058

Saving Stream investment process

For clarity’s sake, you should be aware that Saving Stream’s parent company Lendy Ltd manages the loan origination process, ensuring the borrower’s property securitizing the loan exceeds the actual value lent.

Loan portfolio vetting

1. Lendy Ltd vet property borrower loan applications.

2. Accepted loans are securitized with a legal charge on a borrower’ asset as valued by professional Chartered Surveyors.

3. A portfolio of loans are listed for browsing – loan values will not exceed 70% the Open Market Value of the borrower’s property underwriting the loan.

Manual investing

4. Manually select the loans you wish to invest in, conducting your own due dil.

5. Invest £100 min. for a set time determined by the loan specifically.

6. Start earning 12% per annum immediately, with interest being paid monthly and initial investment repaid at end of term (loans typically repaid circa 6 months).

Saving Stream loans

*statistics correct at time of publication (06/16)

Liam Brooke, co-founder and CEO of Saving Stream told Orca some months ago that their sweet spot loans are £1million - £5million loans. Saving Stream forecasted that they’d be listing loans in the region £25million in the not too distant future. Currently the max. loan value in the portfolio stands at just over £6million.

Here is a breakdown of live, repaid and available loans within the current Saving Stream loanbook:

Live Loans

Total live loans:70 (67 in drawdown, 3 yet to drawdown loan)

Total value live loans:£105,528,063

Total asset security value:£192,545,000

Max. LTV (%):70%

Repaid Loans

Total repaid loans:38

Total value repaid loans:£32,425,500

Total value assets of repaid loans:£60,040,000

Pipeline Loans

At Saving Stream, when vetting loan applications there are three stages prior to an application being deemed successful. These are:

Stage 1: Solicitors Instructed

Stage 2: Replies to Enquiries Received

Stage 3: Report on Title Received

Total pipeline loans:7

Total value pipeline loans:£22,587,124

Total asset security value:£47,350,000

Available loans

As the amount that can be lent to a single available loan varies, you can find all available loans by clicking below and then clicking on the ‘Investments’ tab:

Saving Stream defaults

Saving Stream announced that one of their live loans has gone into default, this means that the outstanding interest and capital to be repaid to investors will be recovered by seizing the asset underwriting the loan and selling it.

This is the second time Saving Stream has experienced a default in its three years’ in operation. The first default was recovered in a three-month period with the property securitizing the loan selling for the original valuation, thus repayments could be made to investors.

More details on this by clicking here: ‘Saving Stream experience second default

Saving Stream security measures

Asset security

Saving Stream only facilitate loans to asset-backed property borrowers. Saving Stream take a charge on the borrower’s asset – usually property – this means the asset secures the loan, so in the event of borrower default, where the loan can’t be repaid in full, the asset/property will be seized by Saving Stream and sold to recover the debt.

Saving Stream will only lend at 70% max. the value of the borrower’s property securitizing the loan, I.e:

£1,000,000 asset = £700,000 loan max. (70% LTV – Loan To Value)

Provision fund

Most major peer-to-peer lending UK platforms maintain a provision fund which sees a percentage of the borrower repayments stored in this safeguard. It can be used to repay any outstanding debt to investors, but only at the discretion of the peer-to-peer lending platform’s directors.

Saving Stream’s provision fund is maintained at 2% of all live loans, at any time.

*stats correct at time of publication 06/16

Current live loanbook value:£105,528,063

Current provision fund value:£2,110,561

Saving Stream management team

Co-founders, Liam Brooke and Tim Gordon, friends from University, conceived Saving Stream in 2013 after initially lending on luxury yachts. Brooke hails from a Banking background while Gordon has experience in E-Commerce. Brooke explained why Saving Stream has had such success in its recent history in an interview with Orca in March 2016:

'Our key to success lies in our responsiveness, not losing money which is a good thing and the simplicity we offer. Even if it’s at the expense of profit we do nothing complicated or unnecessary. Our business value comes from the attention we give to our stakeholders, that being a simple and reliable service.'

Despite suffering its second default in history last week, Brooke maintains their recovery processes when seizing and selling borrower' assets has proven effective in the past - debt recovered from first default within three month period - and assures investors the same will follow with this recent default. This will need to be true if Saving Stream is to maintain their 100% track record in 'not losing money'!

At any rate, at Orca Money we've found the management team to be highly responsive in clarifying key points of interest, such as details of their defaults, which can be found readily on their website, but to hear it from the mouth of a co-founder should give you greater comfort as an investor.


If you are an experienced investor looking to gain exposure to property loans at a high yield return, in the region 10% + then Saving Stream could be a good option.

If you’re nervous due to recent defaults and the increased rate of return bearing elevated risk (you must manually select your own loans) then it’s worth reviewing the statistics laid out in this Saving Stream review, as you can see the provision fund is maintained at a sufficient level to recover debt, should Saving Stream decide to use it. Also, if you were to browse their available loans you’ll see the LTV (loan to value) never exceeds 70% the value of the asset/property securitizing the loan.