Buy-to-let lender fintech Landbay has today announced a £1 billion funding agreement with a leading financial institution to finance mortgages on its platform.
The financing will support Landbay’s plans to significantly grow its buy-to-let lending over the next two years.
Today’s announcement comes at a time of rapid growth for Landbay, which has seen lending volumes rise by 200% over the last 12 months whilst lending default rates remain at 0%. Over the same period headcount has doubled, prompting the firm to take on additional office space in its central London office.
Founded in 2014, Landbay focusses on the professional segment of the buy-to-let market which is growing significantly as the regulatory landscape evolves. The funding announcement follows the increase of Landbay’s loan ceiling to £2 million and its maximum loan term from 25 to 30 years.
Julian Cork, COO, Landbay said: “Technology has been perhaps the greatest disrupter of the financial services sector in the last decade.
“Fintechs, including peer-to-peer lenders, have been able to take advantage of the most up-to-date technology when building their infrastructure, allowing them to do three key things to stay on top – move at speed, expand efficiently and stay focused. Importantly, we’ve done this whilst maintaining a 0% default rate so credit quality is not being compromised with scale.”
He added: “This investment will allow Landbay to reach more buy-to-let landlords with its platform, providing more scope for feedback and development. We will continue to work with our users to ensure we scale our underlying architecture effectively and provide a cutting-edge experience for our customers.”
John Goodall, CEO, Landbay said: “The £1bn funding is coming from a major financial institution, cementing another flagship partnership between traditional finance and fintech. It’s another fantastic example of London’s thriving fintech sector, even in the face of political and economic uncertainty.
“We have spent the last five years investing in technology, building a platform that we’re proud of. Our lending volumes coupled with a successful few years of award wins prove that our market model is popular with investors, borrowers, and brokers alike. ”