LendInvest's latest £259m transaction completes UK's first fintech securitisation

Property finance marketplace LendInvest has securitised £259m of UK prime buy-to-let mortgage loans in an oversubscribed RMBS transaction.

LendInvest is the UK’s first marketplace platform to securitise its own assets. The securitisation is part of a strategy being executed by LendInvest to continue to drive down its cost of capital, and continue its move towards the mainstream mortgage market.

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.

Christian Faes, co-founder and CEO of LendInvest, said: “This is a significant milestone for LendInvest. This securitisation provides us with funding that is cheaper than if we were a small deposit-taking bank, and proves out our business model and its scalability.

“We are building a new type of financial services business that can properly take on and challenge the banks in this market.

“The securitisation received strong support from the market, with new institutions coming into the fold, and buying loans originated through the LendInvest platform.”

LendInvest launched its buy-to-let product in late 2017 after initially receiving funding from Citigroup for the product.

Since then, LendInvest has expanded its reach in the buy-to-let mortgage market, leveraging its end-to-end technology platform to provide a superior experience for borrowers and intermediaries.

LendInvest reported in its most recent financial results that it originated nearly £130m of buy-to-let mortgage loans in the six months to March 31, 2019.

The news comes shortly after LendInvest raised £200m from HSBC to launch its first homeowner loan product, and after the company reported a fifth year of profitable growth for the twelve months to March 31, 2019.

LendInvest has lent over £2bn to date.

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