Specialist buy-to-let lender Landbay has entered into a strategic partnership with savings and retirement firm Phoenix Group to fund a long-term fixed rate mortgage range.
Landbay said that the deal with Phoenix Group added a “different type of funder to its diverse range of partners”. It said that its finance comes from partnerships with banks, asset managers and securitisation programmes.
The lender added that longer-term fixed rates were becoming more popular as interest rates rise, following a period of historically low interest rates.
Landbay is the latest lender to add long-term fixed rate mortgage to its offering, with other lenders including Molo, Habito and Kensington. Perenna is also aiming to launch this year, bringing 30-year fixed rate mortgages to the UK.
John Goodall (pictured), chief executive at Landbay, said that the partnership was a “significant development” for the firm as it explored new opportunities for long-term fixed rate lending.
“The retirement market is huge and gives us a new source of funding which will enable us to continue to provide competitively priced buy-to-let mortgages,” he added.
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Goodall continued that it was an “exciting new era” following its rebrand and the launch of its next generation portal.
“We are really looking forward to developing our relationship with Phoenix over the coming years,” he said.
Tom Ground, managing director of retirement solutions at Standard Life, part of Phoenix Group, said: “We’re pleased to announce this long-term, strategic partnership with Landbay.
Today’s announcement builds on the partnerships we have in the equity release market where we are a significant funder.
“In addition to supporting the long-term mortgage market, this partnership will enable our continued growth in the bulk purchase annuity space where we are supporting defined benefit schemes to de-risk and secure people’s retirement income. Mortgage funding is an effective means of matching these liabilities and we look forward to working with Landbay.”