Durham-based neobank Atom is planning to expand funding partnerships as part of a strategy to grow its lending book via third party lenders.
Atom bank and Landbay are partnering in a £500m funding deal.
The partnership will see the Durham-based neobank use its growing deposit base to fund Landbay’s prime residential buy-to-let mortgages as Atom plots a path to grow its lending book.
David McCarthy, chief financial officer at Atom bank, says the bank has its sights set on growth via lending through third party lenders.
“Our rapid growth over the past few years has been built on strong risk management, a low cost of funding and slick processing. Partnerships with specialist originators of the quality of Landbay complement our existing portfolio of products and provide us with access to new markets.”
John Goodall, hief Executive Officer at Landbay, said: “This partnership with Atom will help us at Landbay to extend our reach in the buy-to-let market and broaden our offering to brokers and landlords. In Atom we have a partner which shares our values and passion for improvements through technology.
“This partnership reinforces the growing reputation Landbay has for originating and managing buy-to-let mortgages at scale for our institutional partners. It also ensures that we can continue to expand our competitive buy-to-let mortgage offering and will help to further accelerate our growth over the coming years.”
Atom already offers both prime and near-prime residential mortgage products and has lent over £3bn for its mortgage book since launch in 2016.