The partnership calls for the UK neobank to use its deposits to fund prime residential buy-to-let mortgages handled by Landbay – a type of home loan for landlords who want to rent out their properties.
The collaboration is designed to help the neobank grow its loan book.
The neobank will improve its competitive advantage versus prominent UK challengers: it plays in the less-crowded mortgage space. If scaling in mortgages proves successful, it would combine its first-mover advantage with a way of originating mortgages to build a moat.
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