Buy-to-let mortgage lender Landbay has signed a $1bn deal with an unnamed leading financial institution to help fund loans over coming years.
With this fresh capital, Landbay will be able to ?serve our intermediary partners and their clients with competitive products,the company said.
The financing deal has come at a time of strong growth for Landbay, which has increased its lending volume by 200 per cent over the past 12 months.
Landbay is a UK residential mortgage p2p investing and borrowing platform. Through Landbay, users are able to apply for a buy-to-let mortgage, getting a decision within 48 hours, with simple fee structures, low interest rates. Users can apply for a mortgage of up to ?1.5m. Investors on the platform can back loans, with an expected return of up to 3.25 per cent.
In a blog post from the company regarding the deal, it said, ?As a company grows, questions are asked of its ability to do so, whilst retaining quality. Of course, weve had growing pains, but Im extremely proud of our ability to scale without compromise. After five years of lending, our default rates remain at 0%, showing our commitment to lending quality during a time of scale.
?Our credit performance was a significant reassurance to our new institutional investor. We went through significant due diligence and so this funding agreement is a considerable endorsement of our people and our approach.p>
Earlier in the year, Landbay entered into a partnership with The Mortgage Compliance & Insurance Club (MCI Club). As part of the agreement, MCI Cloub intermediaries gain access to a selection of lending products tailored for portfolio landlords, HMOs, MUFBs, first-time landlords, limited companies, and new build properties.
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