A “leading financial institution” has committed to funding £1 billion in buy to let mortgages originated on the Landbay platform, according to a post by CEO John Goodall. The company did not disclose the name of the institution.
Landbay is also a member of the UK P2PFA and is a crowdfunding alumnus having raised capital on Seedrs.
Since platform launch, Landbay has originated approximately £347 million for over 1450 mortgages. Thus the billion-pound funding will represent a significant scaling of the platform. The funding will be utilized “over the next few years.”
It is almost 5 years ago exactly (July 7th, 2014), when Landbay completed its first mortgage. The company specializes in buy-to-let mortgages and reports zero defaults since platform launch. The credit performance apparently helped to convince the large investor.
Currently, investors may participate via peer to peer lending or by investing in Landbay’s IF ISA. Today, fixed rates for investors stand at 3.54%. A minimum investment is £100.
Goodall said the funding will allow them to “continue to serve our intermediary partners and their clients with competitive products.”
Goodall added that the £1 billion of funding “signals a new phase of scale for Landbay at a time of rapid growth.” In the last 12 months, lending volumes have risen by over 200%.
“… we have built a reputation with the market for first class service that has been driven by an investment in technology and people. We will continue to invest in both of these areas as I feel very strongly that it is the team that makes a great business and the opportunities to improve what we are doing with the clever use of technology, is still immense.”