The team at LendInvest plc (AIM: LINV) recently shared its FY 2023 Trading Update.
LendInvest, which claims to be one of the UK’s leading platforms for mortgages, announces its trading update “for the year ended 31 March 2023, ahead of its full year results announcement in mid-July 2023.”
As noted in a blog post, platform AuM “increased by 20.5% year-on-year, and by 6.4% in H2, driven by growth across all our key product categories (professional buy-to-let, bridging and development finance).”
The pace of growth “began to slow towards the end of H1 as the Bank Rate continued to increase.” This was “compounded by the market reaction to the Government’s Growth Plan (also known as the mini-budget) in late September 2022.”
FuM also “increased by 45.2% year-on-year and by 4.8% in H2. We continue to see resilient demand from a wide range of sophisticated investors for funding loans originated on our platform.” The firm added that they “have maintained our lending headroom at more than £1 billion to support our borrowers when market conditions improve.”
The firm launched their first residential mortgage products, “bringing their technology-driven model to this £1.7 trillion* market for the first time.”
Their initial Residential Mortgage product range is “aimed at borrowers with multiple sources of income, the self-employed and small-business owners.” Lloyds Bank reportedly “increased its funding to us by £120 million (to £300 million in total) to support this new growth vector.”
HSBC is “providing up to £100 million in funding, together with the British Business Bank via its government-backed ENABLE Guarantee program, to fund our development finance products, allowing us to continue to support home-building and alleviate the undersupply of housing in the UK.”
The firm says it successfully “completed the sale of our residual economic interest in the Mortimer BTL 2020-1 securitization for £7 million, in line with our strategy to optimize FuM while selectively moving assets off balance sheet.”
The firm launched their Mortgage Tech Meetup event series, “bringing together property and technology experts from across the industry with our mortgage technology specialist team to discuss the future of mortgage technology and to provide a framework for market participants to deliver much-needed innovation in the UK mortgage space.”
Rod Lockhart, Chief Executive Officer of LendInvest, said:
“We have continued to deliver on the commitments we laid out at our IPO. We are growing and optimising our FuM accessing strong demand from some of the world’s largest and most sophisticated financial institutions. We are expanding our Platform AuM and we are continuing to invest in our technology platform to further strengthen our competitive advantage as a technology-driven lending and funding platform for mortgages.”
Rod added:
“We also celebrated a landmark for LendInvest with our entry into the UK residential mortgage market, leveraging our success and track record in professional buy-to-let, bridging and development finance. Our proprietary technology is now available to help individuals with multiple sources of income, or the self-employed, and small-business owners, to secure a mortgage, meeting the needs of a large, underserved segment of the market.”
As noted in the update:
“While we remain mindful of the macroeconomic backdrop, we have confidence in our growth strategy. Our technology enables us to continue developing disruptive new solutions in existing and new parts of the mortgage market, giving us a competitive edge with brokers and borrowers and helping us to continue to attract diverse sources of capital.”
For more details on this update, click here.