LendInvest steps-up institutional buy-to-let lending with Citi backing

LendInvest has added Citi to its list of institutional investors, to help build the property finance platform’s buy-to-let (BTL) lending volume.

The global bank joins a range of institutions investing in LendInvest’s secured property loans, including Macquarie Bank, Merseyside Pension Fund and a listed UK bank.

LendInvest said it has agreed to a long-term financing facility with Citi. As part of the agreement, Citi will provide a warehouse funding line to LendInvest that will be used to finance specialist buy-to-let (BTL) loans, designed for professional, experienced landlords and investors.

Initially, the BTL product will be piloted with a select group of mortgage brokers, with the loans being rolled out to the wider market over the coming months.

LendInvest’s BTL loans will be available on terms up to 30 years, taking the business into the longer duration specialist lending market after achieving a 10% share of the UK’s short-term bridging finance market.

LendInvest said entry into the BTL market will accelerate the company’s volume of lending, and create more investment opportunities for its investors.

Christian Faes, co-founder and CEO at LendInvest, said: “Institutional capital coming onto our platform from some of the world’s largest institutions is the ultimate validation of the quality of the lending we do.

“This new funding line from Citi shows how our business has evolved from disruptive FinTech startup to established scale-up business as we move towards the mainstream mortgage market.

“Citi’s backing equips us with the firepower to expand into longer-term lending, as we take our superior technology and processes into the professional portfolio landlord market.

“It also gives us an opportunity to work closely with a team that is world-class in the global mortgage market and a well-established player in the securitisation space.”

To date, investors have funded over £1.1bn (€0.94bn)  of loans to help borrowers buy, build or renovate 4,000 UK homes. LendInvest now manages over £500m of lending capital on behalf of its institutional investors.