LendInvest’s delivered its “most profitable set of results to date”, with platform assets under management up 36% year-on-year to £2.1bn, fueled by buy-to-let growth .
According to LendInvest’s annual results as of March 31, 2022, the assets under management of its buy-to-let platform, which it defines as the amount of money borrowed by customers, rose 67% to $1.5 billion. pounds sterling year on year. .
The lender whose demand for buy-to-let products remained strong and grew further after the launch of its seven-year fixed rate and green mortgage products.
Its seven-year patches accounted for 27% of buy-to-let completions in the first quarter of 2022.
For short-term lending, assets under management on its platform have grown from £678m in the same period last year to £646m this year. The decline was attributed to a “booming real estate market” where borrowers completed projects and sold assets quickly.
LendInvest’s overall pre-tax profit rose 190% to £14.2m, almost triple its figure a year earlier. The company said this was due to the completion of its third securitization and the transfer of a £100 million portfolio of assets for lease to JP Morgan.
From a funding perspective, the company said it had entered into a £150m financial partnership with HSBC and Barclays to fund short-term bridging loans, with a focus on upgrading and refurbishing an aging housing stock.
LendInvest added that it had extended its separate account tenure with JP Morgan and secured £500m financial partnerships with Citi and National Australia Bank. It also completed a third residential mortgage-backed securitization deal worth £280m.
The lender added that it has onboarded 510 brokers to the platform with a signed application.
Rod Lockhart, Managing Director of LendInvest (Photo) said it had been a “historic year” for the company as it delivered its “most profitable set of results to date”.
He added that it had listed on the Alternative Investment Market to support its growth ambitions.
Lockhart said: “Our performance is a testament to the attractiveness of our model, demonstrated by our ability to attract significant capital from our investors and the strong demand from borrowers for our innovative offering and unparalleled customer service.
“We remain at the forefront of the digital transformation of one of the last financial services verticals yet to be disrupted by technology. Although we are aware of the uncertain economic environment, we are very excited about the significant opportunities ahead. »
Lockhart said the war in Ukraine had created “global uncertainty and macro headwinds,” pointing to high inflation and rising interest rates.
However, he said the property market remained strong with annual house price growth of 9.7% in the 12 months to March 2022, and while that was expected to slow, it was not a “concern material” because the lender’s book has a decline. loan to value.
Lockhart said, “The environment of rising interest rates and interest rate swap volatility has been challenging, particularly for the pricing of our buy-to-let products. Our strategy has been to pass on rising costs with higher borrowing rates, as well as offering longer term fixed rate products which have been extremely popular.
He added that the diversity of its lender types and lending product line was one of its “key strengths,” and with the agility of its platform, it could adapt its product mix, launch new products and adjust its risk appetite in line with market conditions.
“The combination of these factors provides a resilient business model that gives us confidence to meet market expectations,” Lockhart concluded.