Landbay, a mortgage lending platform, has launched a new five-year funding partnership worth £200m of originations per annum.
Landbay, has partnered with Allica Bank to fund its buy-to-let mortgages over the next five years.
Allica Bank, the challenger bank for established small and medium-sized enterprises (SMEs), will fund a range of residential buy-to-let mortgages originated by Landbay.
Allica Bank was awarded its banking licence in September 2019 and has grown rapidly since. The bank recently announced it had lent over £70m to SMEs in its first year of lending with £120m of committed lending offers in the process of completion.
Landbay’s new deal with Allica Bank comes in addition to a number of funding deals secured over the past 12 months.
In November last year Landbay secured a £1bn funding deal from an asset manager.
Prior to that it secured a £200m bank funding deal in July and another £1bn of funding in mid-2019.
The Allica Bank partnership complements Landbay’s wide-spread institutional funding arrangements via its marketplace model that includes banks, funds and securitisation programmes.
John Goodall, CEO at Landbay, said: “This partnership with Allica Bank reinforces the growing reputation that Landbay has for originating high quality buy-to-let mortgages for our institutional partners via our platform. It will also ensure that we can continue to provide some of the most competitively priced, buy-to-let mortgages in the market. We are really pleased to be working with Allica who have similar values to Landbay and also have a real customer focus.”
Richard Davies, CEO at Allica Bank, said, “We are delighted to partner with Landbay, extending our strong commercial lending expertise into the residential sector, enabling us to support even more people who are seeking access to finance. The Landbay team share our ambition to support and encourage customers through the combination and optimisation of great customer service and modern technology.
“This partnership is an important step forward in accelerating Allica’s impressive growth potential, leveraging our unique skills and expertise in lending underpinned by the robust and solid foundations we have built.“