LendInvest platform assets under management rise over a third to £2.1bn

According to LendInvest’s full-year results to 31 March 2022, its buy-to-let platform assets under management, which it defines as the amount of money customers have borrowed from, grew by 67 per cent to £1.5bn year-on-year.

The lender said that demand for buy-to-let products remained strong and grew further following the launch of its seven-year fixed rate and green mortgage products.

Its seven-year fixes accounted for 27 per cent of buy-to-let completions in Q1 2022.

For short-term lending, its platform assets under management fell from £678m in the same period last year, to £646m this year. This decline was attributed to a “buoyant property market” where borrowers completed projects and sold assets quickly.

LendInvest’s overall profit before tax grew by 190 per cent to £14.2m, nearly triple its prior year figure. The firm said this was due to the completion of its third securitisation and transfer of £100m portfolio of buy-to-let assets to JP Morgan.

From a funding perspective, the company said it had entered a £150m financial partnership with HSBC and Barclays to fund short-term bridging loans, with a focus on retrofitting and renovating ageing housing stock.

LendInvest added it had extended its separate account mandate with JP Morgan and secured £500m financial partnerships with Citi and National Australia Bank. It also closed a third residential mortgage-backed securitisation deal worth £280m.

The lender added that it had onboarded 510 brokers to the platform with a signed application.

LendInvest’s chief executive Rod Lockhart (pictured) said this had been a “landmark year” for the firm, as it had delivered its “most profitable set of results to date”.

He added that it had listed on the Alternative Investment Market to support its growth ambitions.

Lockhart said: “Our performance is testament to the attractiveness of our model, demonstrated by our ability to attract significant capital from our investors and the strong demand from borrowers for our innovative offering and stand-out customer service.

“We remain at the forefront of the digital transformation of one of the last verticals of financial services yet to be disrupted by technology. While we are mindful of the uncertain economic environment, we are very excited about the significant opportunities ahead.”

Lockhart said the war in Ukraine had created “global uncertainty and macro headwinds”, pointing to high inflation and rising interest rates.

However, he said the property market continued to be strong with 9.7 per cent annual house price growth over the 12 months to March 2022, and whilst that was expected to slow down it was not a “material concern” as the lender’s book has a lower loan to value.

Lockhart said: “The rising interest rate environment and volatility in interest rate swaps has been challenging, particularly for pricing our buy-to-let products. Our strategy has been to pass on the rising costs with higher borrowing rates, as well as offering longer-term fixed rate products that have been hugely popular.”

He added that the diversity of its type of funders and its lending product range was one of its “key strengths”, and along with the agility of its platform, it could adapt its product mix, launch new products and adjust its risk appetite in-line with market conditions.

“The combination of these factors provides for a resilient business model and one that gives us confidence in meeting market expectations,” Lockhart concluded.