LANDBAY has secured £1bn of funding from an unnamed institutional investor to boost its mortgage lending.
The specialist buy-to-let lender Landbay said on Monday that it will use the new funding line to grow its buy-to-let book and boost its market share.
“Given the current political and economic situation, this funding is a huge vote of confidence in both the UK’s private rental sector and Landbay itself,” said chief executive John Goodall (pictured).
“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.
“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.”
Landbay said its lending volumes have increased by 200 per cent over the past 12 months, while headcount has doubled.
It refreshed its product range last week, with rates on more than 30 of its products for professional landlords reduced by up to 0.6 per cent and fees cut by up to 0.5 per cent.
Landbay also recently commissioned an independent stress test that found its investors would still receive returns of over three per cent in an economic downturn.