Buy-to-let lender, Landbay, and long-term savings and retirement business, Phoenix Group, have formed a strategic partnership to fund long-term fixed rate mortgages.

Longer-term fixed rate mortgages are becoming more popular as the market moves out of a period of historically low interest rates.

The new deal with Phoenix Group is the latest funding partnership for Landbay and adds a different type of funder to its range of partners; the lender works with banks and asset managers as well as conducting consecuritisation programmes.

John Goodall (pictured), CEO at Landbay, said: “This partnership with Phoenix Group is a significant development for Landbay as we explore new opportunities for long-term fixed rate lending. The retirement market is huge and gives us a new source of funding which will enable us to continue to provide competitively priced buy-to-let mortgages.

“This is an exciting new era for us as we rebranded and launched our next generation broker portal two months ago and now have access to a new type of long-term funding. We are really looking forward to developing our relationship with Phoenix over the coming years.”

Tom Ground, managing director, retirement solutions at Standard Life, part of Phoenix Group, added: “We’re pleased to announce this long-term, strategic partnership with Landbay. Today’s announcement builds on the partnerships we have in the equity release market where we are a significant funder.

“In addition to supporting the long-term mortgage market, this partnership will enable our continued growth in the bulk purchase annuity space where we are supporting defined benefit schemes to derisk and secure people’s retirement income. Mortgage funding is an effective means of matching these liabilities and we look forward to working with Landbay.”