Landbay secures mortgage funding from unnamed UK bank

But who is the mystery funder?

Buy-to-let mortgage lending platform Landbay this morning announced a funding partnership with an unnamed UK bank.

The partnership will see the deposit-taking bank fund mortgages originated by Landbay, with mortgages held on the bank’s balance sheet.

Landbay declined to reveal which bank the partnership is with, but said the move would help to further strengthen the platform’s institutional funding and allow it to launch new lending products.

 “This new funding partnership and our contribution to the successful Canada Square securitisation earlier this month, together with the measures that we have put in place over the past three months, means that Landbay is one of the few lenders emerging from the pandemic stronger than we went in,” said CEO John Goodall.

Goodall also announced a host of new special edition mortgages to coincide with the funding announcement, including a 2-year and 5-year fix at 3.09 per cent and 3.35 per cent respecitively and both with a 1.5 per cent product fee.

Landbay last week upped its maximum loan size from £1m to £1.5m, increased its maximum loan to value, and slashed the rates on some of its products.

Earlier this month Landbay completed the third securitisation of loans from its book after they were included in a £171.6m pool of UK buy-to-let mortgages originated by several lenders in a transaction called Canada Square Funding 2020-2 PLC.

In December the lending platform cut ties with its retail investors following the closure of its peer-to-peer market in order to focus exclusively on institutional funding.