Christian Faes

LendInvest completes £259m securitisation

LendInvest has securitised £259m of UK prime buy-to-let mortgage loans in an oversubscribed residential mortgage-backed securitisation (RMBS) transaction.

The securitisation — part of LendInvest’s strategy to reduce the cost of capital and continue its move towards the mainstream mortgage market — will allow it to fund future buy-to-let mortgage loans.

Since launching its buy-to-let product in late 2017, LendInvest has expanded its reach in this market.

The property finance marketplace recently reported that it originated nearly £130m of buy-to-let mortgage loans in the six months to 31st March 2019.

Christian Faes, co-founder and CEO at LendInvest (pictured above), said: “This is a significant milestone for LendInvest.

“This securitisation provides us with funding that is cheaper than if we were a small deposit-taking bank and proves out our business model and its scalability.

“We are building a new type of financial services business that can properly take on and challenge the banks in this market.

“The securitisation received strong support from the market, with new institutions coming into the fold, and buying loans originated through the LendInvest platform.”

The securitisation received AAA ratings (for 83% of the securitisation) from global credit rating agencies Moody’s and Fitch.

LendInvest recently raised £200m from HSBC for the launch of its first homeowner loan product.

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