This morning we announced a new agreement with Mortgages for Business: Landbay has taken over from Aldermore Bank as major funder of Keystone Buy to Let Mortgages.
Yesterday, Keystone announced the end of their three-year funding agreement with Aldermore Bank. We are pleased to announce that Mortgages for Business have now chosen Landbay as their preferred partner for the Buy to Let New Classic Range because of our high quality service and a commitment to developing a long-term partnership.
We expect to fund approximately £200m of loans in 2016 through Keystone, which will be wholly financed by the significant institutional funding line we secured earlier this year. Our growing number of retail investors will be in exactly the same position as before. Any investors on our platform will continue to be able to lend on the same high quality BTL mortgages that come through our existing lending channels.
The deal signals a new period of growth for our business here at Landbay. We launched with the plan of achieving a £1bn loan book by 2018, but we have now upgraded our plans to achieve £1bn in lending per annum by 2018. We started lending in 2014 and less than a year on, we are winning business that would normally go to a high-street-name bank with a huge headcount.
To our knowledge this deal is a first: we don’t know of any other P2P platforms that have been trusted to step into the role that a bank would normally occupy. This is not an example of an alternative financier picking up a deal that the banks don’t want; on the contrary, we are taking business that the banks would like to keep.
This agreement is a huge vindication of the rock solid foundation we have built for Landbay and signals our shift from start-up to major buy-to-let mortgage lender. We can offer a fast, agile service at a lower cost than the banks we are competing with and our model means that we have the capacity to scale up rapidly.
We are excited about the next few years. We have got the right building blocks in place and we are looking for other opportunities to grow our loan book.