The challenger bank will provide £200m a year for residential buy-to-let mortgages originated by Landbay.
The latest deal follows on from the £300m of funding Landbay secured in November from an unnamed asset manager and another £1bn deal in July 2019.
John Goodall (pictured), CEO at Landbay, said: “This partnership will 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, added: “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.
“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.”