Landbay and Allica Bank strike £1bn funding partnership

The new partnership will fund £200m of residential buy-to-let mortgages originated by Landbay per year for the next five years.

Property-focused alternative lender Landbay and Allica Bank have launched a five-year partnership worth £1bn.

The deal will see £200m of residential buy-to-let mortgages originated by the former and funded by the latter.

While originally funded by a mix of retail and institutional money, Landbay moved to 100 per cent institutional model in December 2019. Not long after SME-focused mid-market bank Allica scored its banking license. 

Landbay’s now has institutional funding arrangements via its marketplace model that includes banks, funds and securitisation programmes. Landbay’s new deal with Allica Bank comes in addition to a number of funding deals secured over the past 12 months. 

In November last year, Landbay secured a £1bn funding deal from an unnamed asset manager. Prior to that, it secured a £200m bank funding deal in July and another £1billion of funding in mid-2019.

Allica Bank was awarded its banking licence in September 2019 and has grown rapidly since. The bank recently announced it had lent over £70m to SMEs in its first year of lending with £120m of committed lending offers in the process of completion.

John Goodall, CEO at Landbay, said, “This partnership with Allica Bank reinforces the growing reputation that Landbay has for originating high-quality buy-to-let mortgages for our institutional partners via our platform. It will also ensure that we can continue to provide some of the most competitively priced, buy-to-let mortgages in the market."

Richard Davies, CEO at Allica Bank, said, “We are delighted to partner with Landbay, extending our strong commercial lending expertise into the residential sector, enabling us to support even more people who are seeking access to finance. The Landbay team share our ambition to support and encourage customers through the combination and optimisation of great customer service and modern technology.