Landbay exits P2P
Landbay, has closed its retail investment arm and exited the peer-to-peer lending market to become 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.
Landbay said 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 their business as institutional funding now accounts for the majority of its mortgages originated in the past 12 months.
John Goodall, founder and chief executive 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.”
Landbay said the move will allow the team to focus entirely on supporting the private rental sector through buy-to-let products.
The lender will continue to fund buy-to-let mortgages and expects to significantly grow its lending operation.