LendInvest, one of the most successful online lending platforms in the UK, has raised £200 million from HSBC UK to help fuel expansion into the regulated home loan market. In a release, LendInvest said this marks the company’s next step towards achieving its ambition of becoming a whole-of-market mortgage provider.
“This new funding from HSBC is a further important step forward in the evolution of our business. We have shown to great effect how our technology-driven approach to lending can succeed in the specialist loans market. Our sights are now firmly set on continuing to build out our platform and on ultimately disrupting the £200 billion mainstream UK mortgage market.”
Launching in 2019, LendInvest’s first home loan product will be available to homeowners that require short-term bridging finance for terms up to 12 months.
LendInvest described the UK mortgage market as “ripe for disruption.” LendInvest combines both individual and institutional funding in its current online marketplace for loans. LendInvest enables corporate investors and sophisticated or HNW individuals to invest in the mortgages it writes via its “Co-Investment Platform,” discretionary fund and £500 million LSE-listed bond program.
To date, LendInvest has lent over £2 billion taken market share in the short-term finance or bridge market and rapidly scaled in the buy-to-let market. LendInvest has operated a profitable online lending platform for years.
In addition to HSBC UK, LendInvest’s bank funding partners include international banks Citigroup and Nomura, European banks and a number of UK-listed challenger banks.
David Langford, Relationship Director in HSBC’s Non-Bank Financial Institutions Team in London said HSBC is delighted to partner with LendInvest and the platform’s experienced team on this funding.
“The deal demonstrates our commitment to providing access to funding in an evolving UK residential property market in order to help support housing supply. We look forward to the launch of this exciting mortgage product and seeing how it will benefit new and existing LendInvest customers.”