LendInvest, a marketplace for mortgages, has secured funding of up to GBP200 million from HSBC UK, one of the world’s largest banking and financial services organisations, bringing further institutional capital to its platform.
This new funding will enable LendInvest to enter the regulated home loan market for the first time, marking the company’s next step towards achieving its ambition of becoming a whole-of-market mortgage provider. Launching in 2019, LendInvest’s first home loan product will be available to homeowners that require short-term bridging finance for terms up to 12 months.
The GBP200 billion mainstream UK mortgage market is ripe for disruption. LendInvest’s unique marketplace model and proprietary technology supported by high quality institutional funding provides borrowers with attractive products, a much faster process and excellent service – and provides investors with the opportunity to access an attractive, secured asset class.
LendInvest has lent over GBP2 billion to borrowers to date, having quickly taken market share in the short-term finance market and rapidly built scale in the buy-to-let market.
LendInvest manages a substantial and diverse capital base. In addition to HSBC UK, LendInvest’s bank funding partners include global banks Citigroup and Nomura, European banks and a number of UK-listed challenger banks. Alongside multiple institutional funding lines, LendInvest enables corporate investors and sophisticated or HNW individuals to invest in the mortgages it writes via its Co-Investment Platform, discretionary fund and GBP500m LSE-listed bond programme.
Christian Faes, Co-Founder and CEO of LendInvest, says: “LendInvest continues to attract investment onto our platform from some of the world’s largest and most sophisticated investors. This new funding from HSBC is a further important step forward in the evolution of our business. We have shown to great effect how our technology-driven approach to lending can succeed in the specialist loans market. Our sights are now firmly set on continuing to build out our platform and on ultimately disrupting the GBP200 billion mainstream UK mortgage market.”
David Langford, Relationship Director in HSBC’s Non-Bank Financial Institutions Team in London, adds: “We are delighted to partner with LendInvest and the platform’s experienced team on this funding. The deal demonstrates our commitment to providing access to funding in an evolving UK residential property market in order to help support housing supply. We look forward to the launch of this exciting mortgage product and seeing how it will benefit new and existing LendInvest customers.”