Herbert Smith Freehills has advised leading fintech company, LendInvest, on its strategically important securitisation warehouse facility from National Australia Bank (NAB).
LendInvest is one of the of the first fully online buy-to-let (BTL) mortgage providers (having originated its first BTL loan in 2017) and has raised over £1.8 billion of debt and equity investment, making it one of the largest non-bank lenders in the sector. To date, LendInvest has lent just under £400 million in BTL loans through its online platform.
The funding received from National Australia Bank enables LendInvest to further extend its reach into the UK buy-to-let mortgage lending market. The transaction is one of a number of financings that LendInvest has in place for its BTL lending product, including its first £259 million buy-to-let RMBS issued in June 2019 on which Herbert Smith Freehills also advised.
The investment by NAB has received plaudits from the UK government, with Chris Philp, PPS to the Chancellor of the Exchequer, commenting: "This very substantial investment from NAB into LendInvest loans is an important example of how global institutions are motivated to back not only the UK’s thriving Fintech sector, but throw their weight behind the country’s property sector in a long-term and meaningful way. It’s encouraging to see LendInvest push even further in buy-to-let, taking their technology into markets where financial innovation is yet to make its mark.”
The Herbert Smith Freehills team was led by Michael Poulton, supported by Charlene Kong (senior associate) and Liz Potts (associate).
Michael Poulton, partner and head of the securitisation and structured finance practice at Herbert Smith Freehills, commented "We are delighted to support LendInvest on another fantastic transaction for them as they continue to strengthen and diversify their funding sources. We are looking forward to working with them on more deals as their business grows."