Alternative property finance platform LendInvest has launched a new funding partnership with asset-based private credit firm Castlelake.
The agreement enables Castlelake to purchase up to £250m in loan purchases, while enabling LendInvest to scale the firm’s bridging proposition and provide more flexibility for borrowers across the property market.
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The arrangement will increase LendInvest’s capacity for larger and more complex loans, including the ability to fund individual projects up to £15m. It will also give it more capability in regulated bridging loans and other areas such as Development Exit financing.
Bridging is essential to the UK property market because it allows investors and developers to move quickly on opportunities – such as auctions or complex renovations – that require faster, more bespoke funding than a traditional high-street mortgage can provide.
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LendInvest said it has been diversifying its funding sources to ensure a sustainable, long-term capital base that can fund loans across a variety of property-backed opportunities.
“This partnership is a strategically important milestone for our bridging franchise. By partnering with Castlelake we have secured an accretive, long-term funding solution that allows us to fund larger loans more efficiently and support gaps in the market where traditional lenders remain constrained,” said Hugo Davies (pictured), chief capital officer and managing director of mortgages at LendInvest.
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“This new partnership with Castlelake allows us to widen our lending criteria and enable property investors to be bold with their strategy. The team and I are excited to see what we can achieve with this funding pipeline, and we’re ready to start conversations with brokers and their clients,” said Leanne Ardron, managing director of short-term lending at LendInvest.
