The first UK mortgage-backed securitisation of residential assets, originated by The Mortgage Lender has completed today for a total notes issuance of £238.5m.
The oversubscribed deal included £202.2m of note (equivalent to 87 per cent of the pool) rated Aaa/AAA by Moody’s and DBRS.
The AAA-rated tranche was priced at 110bps, 13bps behind Kensington’s recent deal, underpinning a strong debut for the Glasgow-based lender which started residential lending in 2016.
The securitisation follows another record first quarter for the company whose growth is accelerating with the addition of innovative new propositions across its residential and buy to let product ranges that put it on track for £1bn of applications in 2019.
The Mortgage Lender deputy chief executive Peter Beaumont said:
“We are very proud to have completed our first UK residential mortgage backed securitisation which has achieved a better than expected price in an uncertain pre-Brexit climate.
“Our transaction was oversubscribed and a clear sign of considerable investor demand for The Mortgage Lender’s securitised assets. It also proves The Mortgage Lender’s origination and funding model is secure and in demand.
“This is a milestone for The Mortgage Lender and we look forward to being a regular originator of securitised assets moving forward.”
The Mortgage Lender is an intermediary-only mortgage lender. It provides real life lending choices for a wide range of borrowers including employed, self-employed, those with impaired credit, lending into retirement and buy to let investors.
The company was formed by Trevor Pothecary in 2015 a former chief executive of Mortgages Plc which was sold to Merrill Lynch International Bank for in excess of £100m in 2004.
The Mortgage Lender management team also includes deputy chief executive Peter Beaumont who has held board positions at RPS Capital Partners, Mortgages plc and Bank of America Merrill Lynch and Keith Street, former head of Kensington Mortgages as chief commercial director.