The lender has partnered with Allica Bank, a challenger bank for established small and medium-sized enterprises (SMEs), to fund its buy-to-let mortgages over the next five years.
Allica Bank was awarded its banking licence in September 2019 and has grown rapidly. It has lent over £70 million to SMEs in its first year of lending with £120 million of committed offers in the process of completion.
Landbay’s new deal with Allica Bank comes in addition to a number of funding deals secured over the past 12 months.
In November last year Landbay secured a £1 billion funding deal from an asset manager. Before this it secured a £200 million bank funding deal in July and another £1 billion of funding in mid-2019.
The Allica Bank partnership complements Landbay’s wide-spread institutional funding arrangements via its marketplace model that includes banks, funds and securitisation programmes.
Landbay is growing so rapidly that just last week it was announced as the twelfth-fastest growing company in Europe. It was listed at number 12 in the FT 1000 of the European companies that have achieved the highest compound annual growth between 2016 and 2019.
John Goodall, CEO at Landbay, said, “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.
“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.”
Richard Davies, CEO at Allica Bank, said, “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.
“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.“
