Digital mortgage lender Landbay has reported a record month for buy-to-let lending in September, with a total of £6.31m lent across 31 mortgages during the month.
September’s lending levels were higher than the two previous months combined, due in part to both swelling inflows through the Innovative Finance ISA and mounting institutional investment on the peer-to-peer lending side, combined with a broadened range of intermediary partners on the borrower side.
As the Prudential Regulation Authority (PRA) introduces fresh regulation on the buy-to-let mortgage market, Landbay feels that it is in a strong position to capitalise on what is fast becoming an increasingly professional and specialised buy-to-let market.
The PRA’s new underwriting rules have caused a number of mainstream lenders to reconsider their commitment to the buy-to-let lending market in recent months, but this has played into the hand of specialist lenders like Landbay.
The momentum of lending in September is expected to continue into the fourth quarter (Q4) and beyond, as portfolio landlords and their brokers look to specialist lenders to support them through the more restrictive lending environment.
As Landbay approaches its fourth birthday, it has now lent a total of £59.56m to professional landlords across the UK, with zero defaults, arrears or late payments to date.
The CEO and Founder of the lender, John Goodall, says: “Over the past four years, we have invested a lot of time and money into building a platform that we can be proud of; one that provides a competitive source of funding for professional landlords, a credible opportunity for investors, and is able to scale quickly to meet growing demand for specialist buy-to-let lending.
“Like any fast rising new entrant, we’ve experienced some growing pains along the way, but our track record speaks for itself and we now have all the building blocks in place to support continued expansion of the company.”