By Oliver Smith on Tuesday 17 November 2020
CEO John Goodall onboards the lender's third institutional funder.
Buy-to-let mortgage lending platform Landbay has secured its second mystery backer this year, with news of an asset manager who will fund “in excess” of £300m per year of Landbay-originated mortgages.
The news comes after an earlier unnamed deposit-taking UK bank stepped in to fund Landbay mortgages in July, and a £1bn funding line it secured in mid-2019 from an “investment bank sponsored securitisation programme”.
“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 CEO John Goodall.
“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.”
The latest funding deal was conducted entirely remotely with even due diligence done at arms length during this period of Covid-19, with Landbay saying the performance of its loans originated during the crisis “examined in detail and shown to be of the highest quality”.
“Despite Covid-19 related restrictions getting tighter, we have had almost no disruption to working practices all year and we consistently stay within our service levels,” added Goodall.