Landbay and Atom Bank announce origination and funding partnership
Atom Bank has agreed to fund up to £500m of Landbay’s residential buy-to-let mortgages, under the terms of a new partnership between the two firms.
This is the first of a number of planned partnerships for Atom, the challenger bank said, and marks the bank’s first foray into the buy-to-let mortgage market.
“Atom has its sights set on growth, return and customer excellence,” said David McCarthy, chief financial officer, Atom Bank.
“Our rapid growth over the past few years has been built on strong risk management, a low cost of funding and slick processing. Partnerships with specialist originators of the quality of Landbay complement our existing portfolio of products and provide us with access to new markets.”
McCarthy added: “Landbay is an ideal partner for us – not only do they share Atom’s values and a focus on an exceptional customer experience, but they’re supported by strong technology and are committed to providing market-leading products and services.”
Property lender Landbay recently expanded its range of buy-to-let mortgages, offering green products as well as larger loan facilities up to the value of £1.5m.
In its 2020 financial statement, Landbay revealed that its total loan book value rose from approximately £460.5m in 2019, to approximately £602.8m in 2020 – an increase of 30 per cent.
“This partnership with Atom will help us at Landbay to extend our reach in the buy-to-let market and broaden our offering to brokers and landlords,” said John Goodall, chief executive, Landbay.
“In Atom we have a partner which shares our values and passion for improvements through technology.
“This partnership reinforces the growing reputation Landbay has for originating and managing buy-to-let mortgages at scale for our institutional partners. It also ensures that we can continue to expand our competitive buy-to-let mortgage offering and will help to further accelerate our growth over the coming years.”
John Cronin, an analyst at Goodbody, said: “This is a sensible partnership in our view in that it gives Atom Bank access to another stream of lending growth, while Landbay has previously entered similar funding partnerships with banks, funds and securitisation programmes as it pursues its own growth objectives.”
Atom Bank recently surpassed £3bn of mortgage completions and £1bn of business lending.
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