"This securitisation provides us with funding that is cheaper than if we were a small deposit-taking bank"
LendInvest has completed the UK’s first fintech securitisation with £259 million of UK prime buy-to-let mortgage loans in an oversubscribed RMBS transaction.
The securitisation received an AAA rating (for 83% of the securitisation) from both Moody’s and Fitch, the global credit rating agencies.
LendInvest said the securitisation is part of its ongoing strategy to move towards the mainstream mortgage market. The firm recently raised £200 million from HSBC to launch its first homeowner loan product.
In addition to reducing the cost of funding, the process also frees up LendInvest’s capacity to fund future buy-to-let mortgage loans.
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.”