Lendinvest taps Barclays, HSBC and BNP for £300m financing
Lendinvest has renewed a £300m financing deal with Barclays, HSBC and France’s BNP Paribas as the property fintech looks to return to profitability.
The AIM-listed firm said the revolving warehouse financing agreement, shared equally between the three banks, had been extended for an additional three years on what it called improved terms.
LendInvest said the facility would support its mortgage business, with a focus on the firm’s shorter-term bridge financing products, such as bridge-to-let and refurbishment and retrofit.
These products allow property investors and developers to finance the acquisition and enhancement of properties, such as upgrades to meet minimum energy efficiency standards.
Rod Lockhart, Lendinvest’s chief executive, said the renewed financing: “Highlights the confidence that investors have in Lendinvest’s business strategy and the capability of our mortgages division to drive sustained growth”.
“This renewed facility reinforces our commitment to supporting the UK housing market by offering propositions that enable stock upgrades through retrofit financing, while also expanding access to flexible mortgage products like our bridge-to-let range,” he continued.
The deal announced on Monday comes after Lendinvest revealed a £500m investment from JP Morgan last month.
The Wall Street giant extended its existing deal by an additional £500m to bring its total funding to £1.5bn since first investing in LendInvest in 2021.
Lendinvest’s stock price has tumbled 87 per cent since it listed on the London Stock Exchange in July 2021. The firm operates an online marketplace for property finance.
In July, Lendinvest revealed that it swung to a £27.3m pretax loss in the year to 31 March 2024, compared to a £14.3m profit the year prior.
The UK mortgage market has grappled with a slump in demand as higher interest rates put off borrowers, but monetary policy easing from the Bank of England is now expected to fuel a recovery.
Lendinvest expects to return to profit for the 2025 financial year.
The firm’s other backers include heavyweights Citigroup and National Australia Bank.