Earlier this week the lender announced it has facilitated more than £400m in lending since its launch in 2012 and has 21,500 registered investors.
Lendy said it would continue with its existing investments but the new mandate would allow it to look to innovate new products and services in line with its full FCA permissions.
Liam Brooke, CEO of Lendy, said the firm was very pleased to have been given full authorisation by the FCA.
“It has been a long and sometimes challenging journey, which has involved a detailed review of our processes and policies and has helped us mature into a stronger and more robust business,” he said.
“This is a validation of our efforts to move from a young start-up to an established mainstream lender, with the ability to disrupt the banking model for the benefit of clients, and design new investment products and services.”
He added that bridging and development loans through sources such as Lendy were critical to tackling the UK’s housing shortfall, with house building now at its lowest rate since the second world war.