Buy-to-let mortgage lender, Landbay, has shut its retail investment arm and exited the peer-to-peer lending market.
It is becoming an institutional only platform.
Since 2017, the firm’s annual lending has grown by over 500% in prime buy-to-let loans, whilst maintaining a 0% default rate, so all retail investors have consistently earned the returns that they expected.
Landbay says it is committed to supporting all existing retail investors, who have had their funds returned in full to their Landbay account, including all interest accrued to date.
The decision impacts a small part of its business as institutional funding now accounts for the overwhelming majority of mortgages originated in the last 12 months. Landbay has witnessed growth over the last 24 months, which has been driven by institutional funders on its platform and further accelerated by an additional £1bn commitment mid-year.
The move will allow the team to focus entirely on supporting the Private Rental Sector (PRS) through its buy-to-let product offering and building on the firm’s presence in the mortgage intermediary market.
Landbay says it will continue to fund buy-to-let mortgages and expects to significantly grow its lending operation. It also says it remains committed to the intermediary market & existing mortgage customers are entirely unaffected by today’s announcement.
John Goodall, founder and CEO of Landbay, said: “Landbay’s future is incredibly exciting as we see opportunities to grow with increased interest from our existing and new institutional investors. Today’s announcement means that as a business we can devote even more time to lending – supporting the UK’s vibrant and vital private rental sector.
“Having said that, this is not a decision we have taken lightly. The retail business has been instrumental in our journey as a company, and we are grateful to investors for putting their trust in us.
“This decision comes from a position of growth and success, and we will continue to invest in our people, technology, and brand to build a successful business of scale.
“Our aim remains to be the go-to funding partner in the UK buy-to-let market, for institutional investors, intermediaries, and landlords.”