Buy-to-let focussed marketplace lender Landbay has today announced a £1bn funding agreement with a global 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 £2m and its maximum loan term from 25 to 30 years.
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 and one which is robust to with stand growth without compromising on credit quality. 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. ”