Landbay has secured a five-year funding deal with Allica Bank to fund its residential buy-to-let mortgages, worth £200m of originations per year.
The specialist buy-to-let mortgage lender, which used to be a peer-to-peer lender before it pivoted to purely institutional funding, has secured a number of funding deals over the past couple of years.
In November last year, Landbay secured a £1bn agreement with an asset manager. Prior to that it secured a £200m bank funding deal in July 2020 and and a £1bn funding line from an unnamed City investor in July 2019.
Landbay said that the Allica Bank partnership complements its wide-spread institutional funding arrangements via its marketplace model that includes banks, funds and securitisation programmes.
“This partnership with Allica Bank reinforces the growing reputation that Landbay has for originating high quality buy-to-let mortgages for our institutional partners via our platform,” said John Goodall (pictured), chief executive at Landbay.
“It will also ensure that we can continue to provide some of the most competitively priced, buy-to-let mortgages in the market. We are really pleased to be working with Allica who have similar values to Landbay and also have a real customer focus.”
Allica Bank, which positions itself as the go-to bank for small- and medium-sized enterprises (SMEs), was awarded its banking licence in September 2019. The bank recently announced it had lent over £70m to SMEs in its first year of lending with £120m of committed lending offers in the process of completion.
“We are delighted to partner with Landbay, extending our strong commercial lending expertise into the residential sector, enabling us to support even more people who are seeking access to finance,” said Richard Davies, chief executive at Allica Bank.
“The Landbay team share our ambition to support and encourage customers through the combination and optimisation of great customer service and modern technology.
“This partnership is an important step forward in accelerating Allica’s impressive growth potential, leveraging our unique skills and expertise in lending underpinned by the robust and solid foundations we have built.”
Landbay made this year’s list of the fastest-growing companies in Europe, compiled by The Financial Times.
It was listed at number 12 out of 1,000 companies based on compound annual growth rate in revenue between 2016 and 2019.