Landbay. a digital buy-to-let finance platform, has announced a partnership with an unnamed UK bank. According to a note from Landbay, the deposit-taking bank will fund mortgages originated by Landbay and then hold them on their balance sheet. Landbay states that this arrangement complements its current institutional funding arrangements and will allow Landbay to broaden its product range, which is available to buy-to-let investors via mortgage intermediaries. Landbay adds that this partnership will make the company one of the most “diversely funded buy-to-let lenders in the UK.”
John Goodall, CEO at Landbay, commented on the announcement:
“This new funding partnership and our contribution to the successful Canada Square securitisation earlier this month, together with the measures that we have put in place over the past three months, means that Landbay is one of the few lenders emerging from the pandemic stronger than we went in. We have continued to lend throughout the year, including throughout the lockdown. At the end of March we became the only, purely buy to let mortgage lender to make it into Tech Nation’s Future Fifty index of the UK’s most successful tech companies, placing Landbay as one of the leading FinTech companies in the country. We are continuing to strengthen our already robust lending model and innovative platform from which we lend.”
Simultaneously, Landbay announced a range of “Special Edition” products:
- 2 year fixed rates from 3.09%
- 5 year fixed rates from 3.35%
- both include a 1.5% product fee.
The new products are described as a “significant jump” for Landbay and is said to show a “clear commitment to intermediaries about how serious Landbay is about the specialist buy to let market.”
Established in 2014, Landbay is a platform for prime residential buy-to-let mortgages, with funds originating from institutional investors. At one point, Landbay was a peer to peer lender but pivoted away from retail money due to cost and complexity challenges along with an abundance of institutional funding. Landbay is an FCA regulated company, a member of UK Finance, and is based in London.