UK non-bank mortgage lender LendInvest has raised up to £200m in funding from HSBC UK to foray into the £200bn regulated home loan market.
Image: HSBC UK to invest £200m in LendInvest. Photo: courtesy of Mtaylor848/Wikimedia Commons.
The entry of LendInvest into the home loan market business marks its next step towards achieving its goal of becoming a whole-of-market provider.
Launched in 2008, LendInvest calls itself as an online property investing and lending business. The company will expand its portfolio by launching its first home loan product this year to homeowners, which would need short-term bridging finance for terms up to 12 months.
The mortgage lender claims that its marketplace model and technology supported by institutional funding offer attractive products to borrowers that are backed by a faster process and excellent service. For investors, the company enables them to generate stable income secured against property.
The mortgage lender, which has till date lent more than £2bn to borrowers, manages a substantial and diverse capital base.
Apart from HSBC UK, LendInvest’s bank funding partners include Citigroup, Nomura, certain European banks and UK-listed challenger banks.
HSBC relationship director of non-bank financial institutions team in London David Langford said: “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.”
In addition to multiple institutional funding lines, the company helps corporate investors and sophisticated or high-net-worth (HNW) individuals to make investments in the mortgages it writes through its Co-Investment Platform, discretionary fund and £500m LSE-listed bond program.
LendInvest co-founder and CEO Christian Faes said: “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 £200 billion mainstream UK mortgage market.”