The agreement means that Castlelake can buy up to £250m in loan purchases and allows LendInvest to scale its bridging proposition and “provide enhanced flexibility for borrowers”.
The firm said the funding is a “significant evolution” of its funding stack and would optimise its bridging solutions.
LendInvest’s capacity for larger, more complex loans has been increased, including the ability to fund individual projects up to £15m.
The firm added that it would also unlock a “greater capability in regulated bridging loans and other areas such as development exit financing”.
The funding arrangement builds on work the company has done to diversify its funding sources, ensuring it can fund loans across specialist residential, development finance, bridging and buy-to-let (BTL) deals.
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Hugo Davies, chief capital officer and managing director of mortgages at LendInvest, said: “This partnership is a strategically important milestone for our bridging franchise. By partnering with Castlelake, we have secured an accretive, long-term funding solution that allows us to fund larger loans more efficiently and support gaps in the market where traditional lenders remain constrained.
“Coming off the back of our strong half-year results, this deal underscores the institutional confidence in our platform and our commitment to making property finance simple for both new and existing customers.”
