Landbay to fund specialist BTL lending brand

Landbay to fund specialist BTL lending brand

Peer-to-peer mortgage lender Landbay has reached an agreement with Mortgages for Business to fund its specialist lending brand Keystone Buy to Let Mortgages.

Keystone Buy to Let Mortgages is an intermediary-only lending brand providing specialist finance to residential property investors and owned by Mortgages for Business.

As part of the deal, Landbay will fund Keystone’s core products – the New Classic range - following the end of its three-year funding agreement with Aldermore Bank.

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John Goodall, chief executive of Landbay, said: “We do not know of any other P2P platforms that have been trusted to step into the role that a bank would normally occupy.

“This agreement is a huge vindication of the rock-solid foundation we have built for Landbay and signals our shift from start-up to becoming a major buy-to-let mortgage lender.”

Landbay expects to fund £200m of loans in 2016 through Keystone and has secured a significant institutional funding line to finance this channel in its entirety.

David Whittaker, managing director of Mortgages for Business, said: “In a short space of time, Landbay has built a compelling underwriting capacity that offers the kind of rapid response and high-quality service that are vital to Keystone’s offering.”

The New Classic range replaces Keystone’s core products formerly provided by Aldermore.

Key features

Pricing starts at 4.75 per cent for a term tracker and 4.99 per cent for a five-year fixed-rate, while broker procuration fees have been increased to 0.5 per cent of the loan amount.

The range is available to landlords looking for finance both personally and in a limited company capacity.

Key features include rates up to 80 per cent LTV and products specifically for houses in multiple occupation and multi-unit property.

When a landlord takes out a mortgage in the New Classic range, Landbay opens a lending account with a complimentary £100 for the landlord.

Adviser view

David Hollingworth, associate director at Bath-based London & Country Mortgages, said: “We have got a busy buy-to-let market with a lot of competition between lenders, which can generally help most prospective landlords.

“I think where peer-to-peer comes in is where there is an under-served area of the market. This is where Keystone has carved its line of business.”