LendInvest raises £200M to enter mortgage market

Online property lender, LendInvest, has announced that it has raised £200 million from HSBC UK, which the company plans to use to make its first move into the residential mortgage lending space.

LendInvest said it plans to offer its first home loan by the end of the year, which will be available to homeowners who need short-term bridging finance for up to 12 months.

The move is part of LendInvest’s plan to disrupt the £200 billion mainstream UK mortgage market as it becomes a whole of market mortgage provider.

Using its marketplace model and proprietary technology supported by institutional backers, LendInvest has lent more than £2 billion to borrowers to date, it says, building scale short-term finance and buy-to-let markets. It counts Citigroup, Nomura, European banks and UK-listed challenger banks among its sources of funding.

“LendInvest continues to attract investment onto our platform from some of the world’s largest and most sophisticated investors,” said co-founder and chief executive Christian Faes.

“This new funding from HSBC is a further important step forward in the evolution of our business. We have shown to great effect how our technology-driven approach to lending can succeed in the specialist loans market."

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