JPMorgan Chase has invested £500m ($686m) in the mortgage lending business of the UK-based property financing platform LendInvest.

The British fintech company will use the investment to finance its Buy-to-Let product in order to expand its capacity to lend in the BTL market.

The latest investment comes after LendInvest offloaded a mortgage portfolio worth £125m to JPMorgan in September last year.

According to media reports, LendInvest also cancelled its initial public offering (IPO).

The latest deal also comes close on the heels of JPMorgan announcing its plans to launch a digital-only retail bank in the UK as part of its internal expansion strategy.

JPMorgan MD of securitised products Eric Wragge said: “There is a huge amount of innovation going on in the UK fintech space, which is taking place both in spite of, and in response to, the broader context of the Covid-19 pandemic.

“LendInvest is an exciting business with ambitious plans for the future, and our Securitised Products team has been pleased to work with them to provide capacity for over half a billion pounds of new mortgage lending.”

Prior to raising funds from JPMorgan, LendInvest also secured mortgage lending support from global banks including HSBC, Citigroup, and the National Australia Bank (NAB).

LendInvest has processed over £3.5bn in loans online since its inception in 2013.

LendInvest CEO Rod Lockhart said: “This transaction is yet another example of the growing interest from large global institutions in UK fintech, and importantly, another milestone for LendInvest.

“Working with JP Morgan puts us in a stronger position than ever to serve our customers in what will come to be a hugely important year for the industry.

“We look forward to collaborating with the team there as we continue to tailor our unique offering for landlords in an ever-changing environment.”