Landbay, a UK-based alternative finance platform for buy-to-let mortgages, has become the first peer-to-peer lender to be invited to join the Council of Mortgage Lenders (CML) as a full member.
Launched last year and regulated by the Financial Conduct Authority, Landbay recently submitted its full loan book for independent stress tests conducted to Bank of England criteria.
Its membership of the CML is an example of the further inroads made by innovative fintech businesses in becoming a fundamental part of the UK’s financial services sector.
CML members together account for 95% of the residential mortgage lending market and the industry body is an important source of consultation for the Government and Treasury on policy issues and changes. The CML also lobbies the government on mortgage industry issues.
Lanbday says CML membership will assist the firm in maintaining industry best practice in all elements of mortgage lending including compliance and conveyancing. The company says it will also use CML research and aggregate industry data as a benchmark for evolving its lending and risk management policies.
John Goodall, CEO of Landbay comments, “While our business model is highly innovative, our approach to mortgage lending standards are founded upon industry expertise. The CML provides a fantastic network and resource for us to use in fortifying our lending processes as our lending picks up pace.”
Landbay's arrival at the CML coincides with the launch by the FCA of a 'Call for Inputs' on competition in the mortgage sector, with the aim of identifying potential areas where competition may not be working well and could be improved.