Landbay, a UK-based specialist marketplace lending platform for residential buy-to-let mortgages, has signed a £1 billion (€1.1 billion) funding agreement with a large, unnamed institutional investor (via UKTN).
The deal to finance mortgages on its platform will help the property-focused fintech company to significantly grow its buy-to-let lending over the next two years, Landbay says.
Founded in 2014, Landbay says its volumes have risen by 200 percent over the last 12 months, as it recently increased its loan ceiling to £2 million and its maximum loan term to 30 years (from 25 years). At the same time, the company says default rates remain at 0 percent.
John Goodall, co-founder and CEO of Landbay, commented: "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."