Landbay Receives US$1.25bn Funding to Grow P2P Mortgages
Leading peer to peer mortgage provider Landbay, has done a deal work US$1.25billion (GB£1billion) to grow their platform. The UK based fintech was founded in 2014 and has grown lending volumes by 200% in the last 12 months.
Landbay specialises in P2P mortgages in the buy-to-let sector, which is valued at around US$82.5billion (GB£66billion) in the UK. By February this year the company reported total lending of US$304.6million (GB£244million) on properties that have a total valuation of US$434.5million (GB£348million).
John Goodall, the CEO of Landbay, said, "The GB£1billion funding is coming from a major financial institution, cementing another flagship partnership between traditional finance and fintech." The new money comes as the company has increased it's maximum loan value to US$2.49million (GB£2million) and upped it's longest term from 25 to 30 years.
Their underwriting standards have kept Landbay steady, with a loan to value of 72% and an average loan of US$294.270 (GB£235,640) the default rate has remained zero over the four years of operation. Investors come in the guise of retail and institutional investors, who usually put up the initial loan value, and smaller investors whose cash gets spread across a range of mortgages.
COO of Landbay, Julian Cork, said, "Fintechs, including peer to peer lenders, have been able to take advantage of the most up-to-date technology when building their infrastructure." He identified the three key factors that differentiate fintechs as thei ability to move fast, expand efficiently, and maintain focus.