Investment Aug 2018 | Assembly Capital Partners FinTech I LP

Follow-ons Jan 2019 and Feb 2020

Landbay, founded by CEO John Goodall, originated its first buy-to-let mortgage in 2014. The firm is a marketplace lending platform which prices and arranges UK buy-to-let mortgages without itself taking on credit risk.  Funding for loans comes exclusively from wholesale investors. The borrowers – primarily sourced from mortgage brokers – are professional landlords. This is a sizeable lending niche in which market share continues to move from the traditional banks to specialists. As the FinTech ecosystem evolves, we expect banks increasingly to outsource specialist origination.

Landbay is experiencing strong growth in origination and credit quality remains excellent (defaults remain at zero since inception). In July 2019, Landbay concluded a £1bn over three years funding deal with a major US bank.

Despite the challenges posed by the current public health crisis, economic logic is supportive of origination in specialist areas being further concentrated ie the structural trend is positive for Landbay. ACP expects Landbay to take market share on a 3-5 year view.

The firm’s digital product offering has proven highly attractive to mortgage brokers who intermediate most of the professional landlord segment. Landbay has won numerous customer awards.

ACP is delighted to be able to support the Landbay management team as they scale the business.

Both Michael and David are Angel investors in Landbay. Michael is a member of the Board.

Last updated: March 2020