JPMorgan funds $686mn in UK home loans

Bloomberg

JPMorgan Chase & Co. agreed to fund 500 million pounds ($686 million) in UK home loans originated by London-based fintech LendInvest Ltd.
The US bank will use LendInvest to finance properties that will be leased, known as buy-to-let loans, according to a statement. LendInvest has loaned more than 3.5 billion pounds online since its inception about a decade ago, pocketing a fee on the mortgages it sets up.
The deal underscores the resilience of Britain’s residential mortgage market in the face of headwinds from Brexit and Covid-19. LendInvest’s loan book jumped 27% between April and September, according to the firm.
Banks big and small are pursuing British retail customers who are both saving and
borrowing more during the pandemic. JPMorgan said separately it’s developing a digital bank in the UK, following
newcomers.
such as Starling Bank Ltd and Goldman Sachs Group Inc.’s online Marcus venture. Revolut Ltd., a fast-growing payments app, recently applied for a UK banking license.
LendInvest has already attracted a major financial firm to its platform, signing a deal in 2019 with HSBC Holdings Plc to provide 200 million pounds for home mortgages. The firm also sold a 125 million-pound mortgage portfolio to JPMorgan in September.
“There is a huge amount of innovation going on in the UK fintech space, which is taking place in spite of and in response to the Covid-19 pandemic,” said Eric Wragge, managing director of securitized products in JPMorgan’s London office.