Mortgage News
LendInvest adds share of BTL market in upbeat trading year
LendInvest has released positive trading figures as it claims to be “winning share from the banks” in the buy-to-let (BTL) market.
Buy-to-let originations were £127.9m in the six months to 31 March 2019. The product launched in November 2017.
“The UK mortgage market is dominated by slow-moving banks that are suffocated by ever-changing regulation, legacy processes and technology from the 1980s,” said LendInvest co-founder and chief executive, Christian Fees (pictured).
“We made a big move into longer-term lending with our BTL product, which is winning market share from the banks and proving very popular.”
The lender reported £2bn in total cumulative originations from 2008 to 31 March 2019.
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It reported £170m in short-term finance, saying this was “continued growth in demand” for bridging and development products during the year to 31 March.
The company has secured new funding of more than £500m from investors and financial partners, including £200m from HSBC to launch a homeowner loan product later this year.
The platform’s earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 82 per cent to £4m and platform revenue rose by 36 per cent to £72.7m. The value of platform assets was up by 69 per cent to £788.3m during the year.
“LendInvest has notched up another year of profits showing that you can be a fast-growth Fintech business, invest substantially in disruptive technology and be profitable.
“In the past year, we secured substantial investment from pension funds, global banks such as HSBC and a fund set up by the European Investment Fund, part of European Investment Bank Group,” Faes added.