In late April 2015 we agreed commercial terms on a £250 Million annual funding line from institutional lenders. As the largest UK funding commitment made to a P2P lender this is hugely exciting news for a young platform like Landbay.
Does this mean institutions are taking up all of the mortgages previously available to our lenders? Far from it. Our mission has always been to democratise the financial benefits of buy-to-let, enabling lenders with as little as £100 access the same opportunities as the world’s largest banks.
One of Landbay’s key strengths is its ability to originate high quality mortgage applications, which we do through key partners such as Mortgages for Business, the UK’s leading buy-to-let mortgage brokerage. This new funding means that we can now scale our business and transition to the next stage in our growth cycle. This in turn will provide our lenders with greater diversification and additional comfort that detailed due diligence has been conducted on our business. We see this as an endorsement of the quality of Landbay mortgages, our underwriting and overall standards of governance. While our lenders must continue to evaluate lending risk themselves we see this as a strong vindication that we’re running our business prudently.
he new funding will be deployed from 1st July 2015 and is a major step forward in our goal of building a £1 billion loan book by 2018.
The information contained in this post should not be used by consumers to make financial decisions. Consumers have a range of different financial needs and requirements and as such should always seek independent professional financial advice before making an investment decision.