As population increases in cities, so too does property continue to increase in value. London-based Landbay is a “buy-to-let” – a fintech/proptech platform that finances landlords to help them buy properties to rent out. Today, the startup announced that it has received a €1.1 billion loan from an undisclosed financial institution to finance mortgages on its platform.
Founded in 2014, Landbay has seen lending volumes rise by 200% over the last 12 months, while lending default rates remain at 0%. Over the same period it has doubled its staff at its central London office, and the financing will support Landbay’s plans to significantly grow its buy-to-let lending over the next two years.
Landbay focuses on the professional segment of the buy-to-let market, which is growing significantly as the regulatory landscape evolves. The funding announcement follows the increase of Landbay’s loan ceiling to £2 million, and its maximum loan term from 25 to 30 years.
“Technology has been perhaps the greatest disrupter of the financial services sector in the last decade,” said Julian Cork, COO of Landbay. “Fintechs, including peer-to-peer lenders, have been able to take advantage of the most up-to-date technology when building their infrastructure, allowing them to do three key things to stay on top – move at speed, expand efficiently and stay focused. Importantly, we’ve done this whilst maintaining a 0% default rate so credit quality is not being compromised with scale.
“This investment will allow Landbay to reach more buy-to-let landlords with its platform, providing more scope for feedback and development. We will continue to work with our users to ensure we scale our underlying architecture effectively and provide a cutting-edge experience for our customers.”
“The £1 billion in funding is coming from a major financial institution, cementing another flagship partnership between traditional finance and fintech. It’s another fantastic example of London’s thriving fintech sector, even in the face of political and economic uncertainty,” said John Goodall, CEO of Landbay. “We have spent the last five years investing in technology, building a platform that we’re proud of. Our lending volumes coupled with a successful few years of award wins prove that our market model is popular with investors, borrowers, and brokers alike.”
