LendInvest sells £5m interest in securitisation

LendInvest has sold its residual economic interest in a securitisation deal for £5m, which it said will help return the business to profitability.

The specialist mortgage lender’s subsidiary, LendInvest BTL, disposed of its holding in the Mortimer BTL 2021-1 plc securitisation.

LendInvest said the transaction will result in a reduction in the group’s gross loans and advances of around £392m and generate a net pre-tax gain of around £12.1m for 2024.

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It said the deal is “in line with the group’s strategy to optimise its funds under management, while at the same time moving more assets off its balance sheet”.

Citi’s secondary trading desk managed the sale process and purchase for onward sale.

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“We are delighted to have successfully completed this sale, which will strengthen our balance sheet, and underlines our focus on returning the business to profitability,” said Rod Lockhart, chief executive of LendInvest.

Last month, LendInvest’s interim results showed that the company swung into a pre-tax loss of £15.1m in the six months to 30 September 2023, from a profit of £14.8m a year earlier.

It attributed the loss to challenging macro conditions, the disposal of a low margin loan portfolio and higher impairment charges due to a “robust approach to debt recovery”.

LendInvest’s shares were trading 7.4 per cent higher at 29p by 10.47am GMT.

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