Landbay has outlined the benefits of diverse funding lines, as it looks to bring more investors on board following its latest deal with an asset manager.
This month, the lender unveiled a deal with an unnamed asset manager that will aim to fund in excess of £300m per year of Landbay-originated buy-to-let mortgages.
Landbay said it has been diversifying its funding lines to ensure it can continue to fund mortgages without any constraints.
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The firm said that the loan-to-values lenders lend at can be first determined by funders. During the first lockdown, some buy-to-let providers pulled out of the market due to funders lacking the risk appetite required during that time.
Landbay said its strategy is to attract multiple funders to its platform.
Over the past 12 months, the lender has brought three different funding lines onboard, comprising an investment bank, a deposit-taking bank and most recently, an asset manager.
“By adding a new funding partner, we’ve further enhanced our ability to fund buy-to-let mortgages,” Landbay said in a blog post on its website.
“We’ve become more resilient to external market pressures, by blending our product offering based on the different risk appetites of our funders. We have created the perfect platform to attract institutions who wish to fund buy-to-let mortgages.
“Continued investment in our technology has allowed our funders to monitor their portfolios 24/7, giving them more control and increased confidence in our ability to underwrite and manage the customer journey at all times.
“The intention is to continue increasing the number of our funding partners as demand for our particular brand of buy-to-let service continues to be more attractive to mortgage intermediaries and the service and products we offer landlord borrowers.”