Following a recent additional £1 billion funding agreement, award-winning mortgage lender Landbay exits retail P2P funding market in favour of institutional investment
All existing retail peer-to-peer investors have had their funds returned to their Landbay account in full, including interest.
London, 5 December 2019 – Buy-to-let mortgage marketplace lender, Landbay, has closed its retail investment arm and exited the peer-to-peer lending market in favour of becoming an institutional only platform, it announced today.
Since 2017, the firm’s annual lending has grown by over 500% in prime buy-to-let loans, whilst maintaining a 0% default rate, so all retail investors have consistently earned the returns that they expected.
Landbay is committed to supporting all existing retail investors, who have had their funds returned in full to their Landbay account, including all interest accrued to date.
The decision impacts a small part of their business as institutional funding now accounts for the overwhelming majority of mortgages originated in the last 12 months. Landbay has witnessed significant growth over the last 24 months, which has been driven by institutional funders on its platform and further accelerated by an additional £1bn commitment mid-year.
The move will allow the team to focus entirely on supporting the Private Rental Sector (PRS) through an innovative buy-to-let product offering and building on the firm’s meaningful presence in the mortgage intermediary market. Landbay will continue to fund buy-to-let mortgages and expects to significantly grow its lending operation. Landbay remains committed to the intermediary market & existing mortgage customers are entirely unaffected by today’s announcement.
John Goodall, founder and CEO of Landbay comments: “Landbay’s future is incredibly exciting as we see opportunities to grow with increased interest from our existing and new institutional investors. Today’s announcement means that as a business we can devote even more time to lending – supporting the UK’s vibrant and vital private rental sector.
“Having said that, this is not a decision we have taken lightly. The retail business has been instrumental in our journey as a company, and we are grateful to investors for putting their trust in us.
“This decision comes from a position of growth and success, and we will continue to invest in our people, technology, and brand to build a successful business of scale.
“Our aim remains to be the go-to funding partner in the UK buy-to-let market, for institutional investors, intermediaries, and landlords.”
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Notes to Editors:
For more information on today’s decision please contact:
Rupert Bhatia/ Sandy Downs
T: 07710 236037/ 07384 907528
T: 020 3817 4443
Established in 2014, Landbay is a multi-award winning lending platform for prime residential buy-to-let mortgages, with funds originating from institutional investors.
Recently announced #28 in Deloitte’s Fast50 of the fastest growing technology companies in the UK, this award accompanies a further eight awards in 2019, in recognition of growth and excellence within the industry.
Landbay is a member of UK Finance and the company is based in London (UK). More information can be found at www.landbay.co.uk.