LendInvest completes first securitisation for £259m

The lender is the first platform-based provider to directly securitise its own assets and said the transaction was over-subscribed.

The move was part of a strategy being executed to reduce the cost of capital for the lender and continue its move towards the mainstream mortgage market.

It will also free up capacity to fund future buy-to-let loans as it continues towards its growth targets.

The securitisation received AAA rating for 83 per cent of the tranche from credit rating agencies Moody’s and Fitch. The senior issue was priced at 130 basis points over the Sterling Overnight Index Average (Sonia).

Cheaper than bank deposits

LendInvest co-founder and CEO Christian Faes noted that it was a significant milestone for the lender.

“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,” he said.

“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 platform,” he added.

£130m buy-to-let lending

LendInvest launched its buy-to-let proposition in late 2017 after initially receiving funding from Citigroup and it has expanded its reach in the market since then.

It originated nearly £130m of buy-to-let mortgage loans in the six months to 31 March 2019 and has lent more than £2bn across all sectors since its launch in 2008.

A £200m funding line with HSBC was announced in April to launch its first regulated bridging product.

Citi acted as sole arranger on the securitisation, with BNP Paribas, Citi and HSBC as joint lead managers.