LendInvest secures £200m finance from HSBC for regulated bridging product launch

The lender emphasised its desire to enter the mainstream mortgage market and said the latest investment would help it to do so.

It will use the up to £200m funding line from HSBC to launch a regulated short-term bridging product for homeowners that require short-term finance for terms up to 12 months.

“This new funding will enable LendInvest to enter the regulated home loan market for the first time, marking the company’s next step towards achieving its ambition of becoming a whole-of-market mortgage provider,” the lender said.

Since September LendInvest has made several statements about its desire to enter the mainstream mortgage market and potentially float on the stock exchange.

LendInvest said it has lent more than £2bn to borrowers to date with funding partners including Citigroup, Nomura, European banks and a number of UK-listed challenger banks.

Sights set on mainstream market

LendInvest co-Founder and CEO Christian Faes said: “This new funding from HSBC is a further important step forward in the evolution of our business.

“We have shown to great effect how our technology-driven approach to lending can succeed in the specialist loans market.

“Our sights are now firmly set on continuing to build out our platform and on ultimately disrupting the £200bn mainstream UK mortgage market.”

HSBC non-bank financial institutions relationship director David Langford added: “We are delighted to partner with LendInvest and the platform’s experienced team on this funding.

“The deal demonstrates our commitment to providing access to funding in an evolving UK residential property market in order to help support housing supply.

“We look forward to the launch of this exciting mortgage product and seeing how it will benefit new and existing LendInvest customers.”

SimplyBiz distribution

LendInvest also announced it has joined the SimplyBiz Mortgages’ lender panel, effective immediately.

SimplyBiz Mortgages CEO Martin Reynolds said: “We are always looking to expand our lender distribution and are especially keen to work with lenders that offer new opportunities for our Members.

“The LendInvest proposition does just that and I am pleased to welcome them onto our panel. I believe its breadth of criteria and flexible approach to both clients and cases will make it an attractive proposition for our member firms.”

LendInvest sales director Ian Boden added: “As we look to extend our distribution, we are delighted to be partnering with a leading mortgage club of SimplyBiz’s size.”