Fleet Mortgages has completed half a billion pounds of buy-to-let mortgage lending since its launch at the start of 2015.
The lender’s funding comes from asset manager Blackrock, with one single BlackRock client already funding £240m of Fleet’s prime buy-to-let loans.
BlackRock manages the investor clients directly and Fleet originates the pools of loans for them based on their risk and return requirements. Each client takes a position in the mortgage assets, directly owning the risk on them and securing the returns.
Bob Young, chief executive of Fleet Mortgages, said: “To my mind our relationship with BlackRock was totally unique in the UK mortgage market, although our success is obviously causing others to look at the sector.
“In effect we have brought a new type of investor and new money to the buy-to-let market and our offering allows these investors to directly invest in the mortgage market – the largest single asset class in Europe – and secure strong returns.
“As levels of return drop in other asset classes, the UK property market retains its allure and demand has been considerable since our launch, and looking ahead to the future.”
He added: “Unsurprisingly, the focus is on the credit-quality of our lending – these are investors who want to take a position in high-quality, prime lending and we wouldn’t have it any other way.
“We are not interested in ‘less-than-prime lending’ and this is clearly a further attraction for BlackRock’s clients. Passing half a billion of lending is a notable achievement and we, and BlackRock, are incredibly pleased with how the relationship is working and our ongoing activity levels.
“That said, we have major ambitions for the future, and looking at the appetite for this type of lending from investors, we are seeking to increase transaction levels and develop our activity in the months and years ahead.”
Fleet Mortgages currently has over 2,000 buy-to-let borrowers with no arrears.