LendInvest, the marketplace for property finance, has securitised £259 million of UK prime Buy-to-Let mortgage loans in an oversubscribed RMBS transaction.
LendInvest is the UK’s first marketplace platform to securitise its own assets*. The securitisation received an AAA rating (for 83% of the securitisation) from both Moody’s and Fitch, the global credit rating agencies**.
The securitisation is part of a strategy being executed by LendInvest to continue to drive down its cost of capital, and continue its move towards the mainstream mortgage market. The senior tranche for the inaugural issue was priced at 130bps over SONIA.
In addition to reducing the cost of funding, the process frees up LendInvest’s capacity to fund future Buy-to-Let mortgage loans as the company continues to win market share from traditional bank lenders.
LendInvest launched its Buy-to-Let product in late 2017 after initially receiving funding from Citigroup for the product. Since then, LendInvest has expanded its reach in the Buy-to-Let mortgage market, leveraging its end-to-end technology platform to provide a superior experience for borrowers and intermediaries.. LendInvest reported in its most recent financial results that it originated nearly £130 million of Buy-to-Let mortgage loans in the six months to 31 March 2019.
Christian Faes, Co-Founder, and CEO of LendInvest commented: “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.”
Citi acted as Sole Arranger on the securitisation, Mortimer BTL 2019-1, an inaugural RMBS transaction backed by a portfolio of UK prime buy-to-let mortgage loans. BNP Paribas, Citi and HSBC acted as Joint Lead Managers.
The news comes shortly after LendInvest raised £200 million from HSBC to launch its first homeowner loan product, and after the company reported a fifth year of profitable growth for the twelve months to 31 March 2019.
LendInvest has lent over £2 billion to date, successfully disrupting the UK mortgage market by providing attractive products to both borrowers and investors by employing technology which provides a superior customer experience.