Landbay, the buy-to-let lender, recently announced a £1 billion funding agreement to finance mortgages on the fintech’s platform. This agreement with a leading financial institution is a milestone in Landbay’s plans to grow its buy-to-let lending over the next two years.
The announcement comes at a time when Landbay is experiencing rapid growth. The fintech has seen lending volumes rise by 200% over the last 12 months and its lending default rates remain at 0%.
The company headcount has doubled over the last twelve months, and as such, the company has taken on additional office space in central London.
Landbay has found success focusing on the professional segment of the buy-to-let market, a sector that is growing significantly. The firm recently increased their loan ceiling to £2 million and their maximum loan term from 25 to 30 years.
Julian Cork, COO, Landbay said: “Technology has been perhaps the greatest disrupter of the financial services sector in the last decade.
“Fintechs, including peer-to-peer lenders, have been able to take advantage of the most up-to-date technology when building their infrastructure, allowing them to do three key things to stay on top – move at speed, expand efficiently and stay focused. Importantly, we’ve done this whilst maintaining a 0% default rate so credit quality is not being compromised with scale.”
He added: “This investment will allow Landbay to reach more buy-to-let landlords with its platform, providing more scope for feedback and development. We will continue to work with our users to ensure we scale our underlying architecture effectively and provide a cutting-edge experience for our customers.”
John Goodall, CEO, Landbay said: “The £1bn funding is coming from a major financial institution, cementing another flagship partnership between traditional finance and fintech. It’s another fantastic example of London’s thriving fintech sector, even in the face of political and economic uncertainty.
“We have spent the last five years investing in technology, building a platform that we’re proud of. Our lending volumes coupled with a successful few years of award wins prove that our market model is popular with investors, borrowers, and brokers alike.”