Specialist buy-to-let lender Landbay has agreed a £1 billion deal to bolster its mortgage lending.
The funding – which is from a leading institutional investor – will support Landbay’s plans to significantly grow its buy-to-let loan book.
It also comes at a time when the lender seeks to boost its share in the market and the number of professional landlords it reaches via the intermediary market across the UK.
Landbay has seen lending volumes rise by 200% over the last 12 months, and headcount has doubled over the same period – prompting the firm to take on additional office space in its central London office.
Founded in 2014, Landbay focuses on the professional segment of the growing buy-to-let market. The funding announcement follows the increase of its loan ceiling to £2 million and its maximum loan term from 25 to 30 years.
Products – which include fixed and tracker deals across standard properties, small and large houses in multiple occupation (HMOs), multi units and expat lending – are available to all buy-to-let landlords via their brokers through Landbay’s network and club partners.
“Given the current political and economic situation, this funding is a huge vote of confidence in both the UK’s private rented sector and Landbay itself,” John Goodall, chief executive officer at Landbay, said.
“Demand for high quality rental properties is high and unlikely to slow down any time soon. The reality is that many tenants are keen to distance themselves from the hassle and cost of homeownership. In fact, we know that renting is increasingly seen as a lifestyle choice rather than the default option.”
He concluded: “Landlords are vital for the UK’s economy, and this sizeable injection of capital will allow us to support even more of them and their brokers.”