BNP Paribas Joins LendInvest’s £300M Mortgages Financing

LendInvest PLC (AIM: LINV) has revealed that BNP Paribas SA joined its £300 million financing syndicate with HSBC Holdings PLC and Barclays PLC in order to support the ongoing growth of its short-term mortgages.

LendInvest is a London-headquartered  non-bank mortgage lender, and BNP Paribas is a Paris-based banking institution.

LendInvest noted that the financing will aim to support its short-term mortgages, including financing the refurbishment and upcycle of old housing stock back into circulation across the United Kingdom.

This latest partnership announcement with BNP Paribas increases LendInvest’s Funds under Management to GBP3.7 billion, and comes after news in April 2023 that Wells Fargo & Co agreed with LendInvest to become its funding partner for its buy-to-let division.

Company  CEO Rod Lockhart stated:

“We are thrilled to welcome BNP Paribas to our growing roster of global financial partners and institutional investors, not only demonstrating their trust in our capabilities and the continued momentum in our business, but significantly supporting our short-term mortgage proposition. Housing supply is a fundamental issue in the UK at the moment and our short-term mortgages play a key role in addressing this by helping developers refurbish and upgrade old housing stock.”

In London, LendInvest shares had been down 2.9% to 79.10 pence each as of Thursday afternoon (May 11, 2023), and HSBC shares fell 1.9% to 589.60p each and Barclays shares dropped 1.0% to 151.68p each.

In Paris, BNP Paribas shares declined 1.7% to EUR56.86 each, while in New York, Wells Fargo shares fell 1.0% to USD37.91 each on Thursday (May 11).

As covered last month, the team at LendInvest plc 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.”

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