Property finance platform, LendInvest, has announced the launch of a new funding partnership with private credit investor, Castlelake.

The agreement will allow Castlelake to purchase up to £250m in loan purchases and enable LendInvest to scale its bridging proposition.

LendInvest, which provides short-term, development and buy-to-let mortgages to professional property investors and developers, said the new funding represents a “significant evolution” of its funding stack.

The arrangement will increase the firm’s capacity for larger and more complex loans, including the ability to fund individual projects up to £15m, while simultaneously unlocking a greater capability in regulated bridging loans and other areas such as development exit financing.

LendInvest also said its partnership with Castlelake builds on work from last year to diversify its funding sources, helping it put together a long-term capital base that can fund loans across a variety of property-backed opportunities.

“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,” saidhief capital officer and managing director of mortgages at LendInvest, Hugo Davies.

“Coming off the back of our strong half-year results, this deal underscores the institutional confidence in our platform and our commitment to making property finance simple for both new and existing customers.”

Managing director of short-term lending at LendInvest, Leanne Ardron, added: “The wider UK property market has realised what we always knew, and that is bridging financing is no longer a niche, but a powerful tool used for property investors to maximise their investing potential.

“This new partnership with Castlelake allows us to widen our lending criteria and enable property investors to be bold with their strategy.”

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