LendInvest, which operates an online marketplace for mortgages, has received an investment of £200m ($261m) from HSBC UK to support its foray into the regulated home loan sector.
LendInvest plans to roll out its first home loan offering this year.
The product will require short-term bridging funding for up to 12 months.
The move forms part of LendInvest’s plan to become a “whole-of-market mortgage provider”.
HSBC relationship director in non-bank financial institutions team in London David Langford said: “The deal demonstrates our commitment to providing access to funding in an evolving UK residential property market in order to help support housing supply.”
Till date, LendInvest is said to have offered loans worth over £2bn.
LendInvest is also backed by Citigroup and Nomura, among others.
The firm believes that the £200bn UK mortgage market is “ripe for disruption”.
LendInvest co-founder and CEO Christian Faes said: “This new funding from HSBC is a further important step forward in the evolution of our business.
“We have shown to great effect how our technology-driven approach to lending can succeed in the specialist loans market.
“Our sights are now firmly set on continuing to build out our platform and on ultimately disrupting the £200 billion mainstream UK mortgage market.”