A big investment bank just signed up to lend over £40 million on mortgage funding platform LendInvest
LendInvest
The deal gives LendInvest access to over £40 million to fund mortgages with. LendInvest's online platform matches short-term mortgage borrowers with funding, either from retail investors or institutional investors. Investors get returns of around 5% per annum.
The Macquarie funding deal means the London startup now has access to over £260 million of institutional money it can finance mortgages with. Four other banks currently lend over the platform, although LendInvest would not say which ones. A spokesperson did say that one is a UK challenger bank.
LendInvest CEO and cofounder Christian Faes says in a statement announcing the deal:
LendInvest is creating the most diverse capital base of any mortgage lender in the market which is a key differentiator for our business. By welcoming another significant institution and funding line to our business, we are putting in place the foundations for a very scalable move into longer duration lending and ultimately the mainstream UK mortgage market.
Macquarie is a leading global financial institution with a proven deep knowledge of the UK mortgage market. We look forward to working with the Macquarie team as we expand our product range with longer term loans that are attractive to them and other capital markets investors. This warehousing line will assist us as we move towards being able to securitise our assets for institutional investors.
Securitisation is where financial institutions cut up and sell on loans they've sold - essentially selling the future income from loans. Funding Circle, another peer-to-peer lending platform, are doing this with their loans.
LendInvest plays in the short-term, or bridging, mortgage market. This is generally for property developers who buy a place, do it up over say 6 months, and then flip it for a profit. It's a fairly specialised market and one that LendInvest, which traces its roots back to 2008, already has a 10% share off.
The fintech startup last year lent £300 million over its online platform and has lent over £620 million since July 2013. CEO Faes told BI earlier this year that the platform is now looking to move into the buy-to-let market.
The company raised £22 million from Chinese technology company Beijing Kunlun last June and bagged a further £17 million from venture capital firm Atomico in March.
NOW WATCH: How ISIS makes over $1 billion a year
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market