LendInvest has priced its second securitisation just nine months since its debut sale of buy-to-let loans.
The alternative property finance platform said it has packaged £285m of UK prime buy-to-let mortgage loans in an oversubscribed securitisation arranged by Citi, which was also a lead manager alongside National Australia Bank and JP Morgan.
It follows a landmark £259m securitisation by LendInvest in June 2019, which made it the first marketplace platform to securitise its own assets.
The securitisation received an AAA rating for 83 per cent of the securitisation from both Moody’s and Fitch, the global credit rating agencies.
The securitisation is part of a strategy being executed by LendInvest to to drive down its cost of capital, and continue its move towards the mainstream mortgage market.
In addition to reducing the cost of funding, the process frees up LendInvest’s capacity to fund future buy-to-let mortgage loans as the company continues to win market share from traditional bank lenders, the platform said.
LendInvest used to be a member of the now defunct Peer-to-Peer Finance Association, before it withdrew its P2P regulatory application in 2017 and closed its platform to retail investors.
It now focuses on City investors and has secured a number of large institutional funding lines, including separate £200m agreements with HSBC and the National Australia Bank.
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