Landbay exits P2P lending market

All existing retail peer-to-peer investors have had their funds returned to their Landbay account in full, including interest.

Landbay says the decision only impacts a small part of its business as institutional funding now accounts for the overwhelming majority of mortgages originated in the last 12 months.

The move will allow the team to focus entirely on its buy-to-let product offering and building its presence in the intermediary mortgage market.

Since 2017, the firm’s annual lending has grown by over 500% in prime buy-to-let loans and Landbay says it now expects to "significantly grow its lending operation".

New FCA rules surrounding peer-to-peer platforms come into force on the 9th of December.

John Goodall, founder and CEO of Landbay commented: “Landbay’s future is incredibly exciting as we see opportunities to grow with increased interest from our existing and new institutional investors. Today’s announcement means that as a business we can devote even more time to lending – supporting the UK’s vibrant and vital private rental sector.

“Having said that, this is not a decision we have taken lightly. The retail business has been instrumental in our journey as a company, and we are grateful to investors for putting their trust in us.

“This decision comes from a position of growth and success, and we will continue to invest in our people, technology, and brand to build a successful business of scale.

“Our aim remains to be the go-to funding partner in the UK buy-to-let market, for institutional investors, intermediaries, and landlords.”