LENDINVEST has secured a £200m funding line from HSBC UK, allowing it to make its first move into the residential mortgage lending space.
The online property lender said it plans to offer its first home loan by the end of the year, which will be available to homeowners who need short-term bridging finance for up to 12 months.
The move is part of LendInvest’s plan to disrupt the £200bn mainstream UK mortgage market as it becomes a whole of market mortgage provider.
Using its marketplace model and proprietary technology supported by institutional backers, LendInvest has lent more than £2bn to borrowers to date, it says, building scale short-term finance and buy-to-let markets. It counts Citigroup, Nomura, European banks and UK-listed challenger banks among its sources of funding.
Read more: LendInvest bond backs £50m of property loans
“LendInvest continues to attract investment onto our platform from some of the world’s largest and most sophisticated investors,” said co-founder and chief executive Christian Faes (pictured).
“This new funding from HSBC is a further important step forward in the evolution of our business. We have shown to great effect how our technology-driven approach to lending can succeed in the specialist loans market.
“Our sights are now firmly set on continuing to build out our platform and on ultimately disrupting the £200bn mainstream UK mortgage market.”
David Langford, relationship director in HSBC’s non-bank financial institutions team, said the deal “demonstrates our commitment to providing access to funding in an evolving UK residential property market in order to help support housing supply.”
“We look forward to the launch of this exciting mortgage product and seeing how it will benefit new and existing LendInvest customers,” he added.
LendInvest is expected to list on the stock market this year in an IPO valued at at least £500m, and has reportedly appointed three investment banks to work on the plans. It was reported earlier this month that Lazard is advising the lender on its strategic options.