LendInvest is working on its third securitisation deal, just over a year since completing its second.
A stock market update through LendInvest Secured Income plc showed that its parent company, the alternative property lender, has securitised £280m of UK prime buy-to-let mortgage loans.
The update said Citi was the sole arranger and acted as lead manager alongside HSBC, National Australia Bank and Standard Chartered Bank for the oversubscribed transaction.
A spokesperson said the pricing would be revealed once the deal completes later this month.
The lender packaged £285m of UK prime buy-to-let mortgage loans in an oversubscribed securitisation during March 2020 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 LendInvest’s strategy to drive down its cost of capital and continue its move towards the mainstream mortgage market.
Read more: P2P securitisation boom still on the cards
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.