Thursday, November 26, 2020
Real EstateUK

Landbay agrees new funding line

funding deal

This is the latest institutional investment unveiled by Landbay, following a bank funding deal and a £1bn funding line in 2019

Landbay has agreed a new funding line with an asset manager, to help it meet the increasingly high demand for its buy-to-let mortgages ahead of the end of the stamp duty holiday.

Under the new deal, the unnamed asset manager will aim to fund in excess of £300m per year of Landbay-originated mortgages.

John Goodall, chief executive of Landbay, said that demand for the specialist buy-to-let mortgage lender’s products has hit a record high, as property investors look to make the most of the temporary tax changes.

Chancellor Rishi Sunak in July suspended stamp duty on homes costing up to £500,000 until 31 March 2021. The temporary change has also benefitted buy-to-let investors, as the tax savings also apply to landlords who buy property in UK to expand their property portfolios or incorporate as a lettings business.

The addition of an asset manager as one of our funding partners is a major step to further diversify the funding of our mortgage platform and makes us probably the most diversely funded buy-to-let lender in the UK, said Goodall.

He said, this reinforces our ability to provide mortgages to a broad range of buy-to-let investors and their advisers. This is particularly important as we are only four months away from the end of the stamp duty holiday and demand for our buy-to-let mortgages is higher than we have ever seen it.

This is the latest institutional investment unveiled by Landbay, following a bank funding deal announced in July and a £1bn funding line from an unnamed City investor in July 2019.

Landbay closed its platform to retail investors last December, effectively marking its exit from the peer-to-peer lending market.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Leave a Reply

4 − three =