The news: Atom Bank struck a £500 million ($641.2 million) partnership with mortgage originator Landbay, per AltFi.
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.
More on this: The collaboration is designed to help the neobank grow its loan book.
The bigger picture: Working with Landbay is Atom Bank’s latest in a slew of major announcements this year, which have included:
The opportunity: Atom Bank’s Landbay deal will help it scale its loan book even faster.
The neobank will enhance its competitive advantage versus prominent UK challengers: it plays in the less-crowded mortgage space, unlike Revolut, Starling, and Monzo. If scaling in mortgages proves successful, it would combine its first-mover advantage with a sophisticated way of originating mortgages to build a moat.