Landbay has become an institutional only platform after closing its retail investment arm and exiting the peer-to-peer lending market.
The buy-to-let mortgage lender, one of the UK’s fastest-growing peer-to-peer property lenders, had offered savers the opportunity to earn higher returns by enabling them to act as lenders by taking slices of buy-to-let property mortgages.
But after deciding to focus exclusively on facilitating loans for financial institutions, the lender has now returned all funds to its 3,700 remaining retail investors.
Landbay, which remains committed to the intermediary market, will continue to fund buy-to-let mortgages and expects to significantly grow its lending operation.
Existing Landbay mortgage customers are entirely unaffected by the changes.
John Goodall, founder and CEO of Landbay, said: “Landbay’s future is incredibly exciting as we see opportunities to grow with increased interest from our existing and new institutional investors. The 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.”