TML assets fully subscribed on first £330m buy to let securitisation

The first securitisation of 2,096 unregulated residential buy to let mortgages secured on properties in England, Wales and Scotland, originated by The Mortgage Lender, completed yesterday (30.09.20)

The fully subscribed deal of £200m class A notes priced at 110 bps above Sonia were privately marketed to investors and, as a result of a strong order book, made public on 17 September.

The A notes were distributed through Lloyds Bank, Bank of America and Barclays Bank with the A-E notes fully pre-placed. X notes and residual certificates were also placed with investors which means the £330m transaction was fully subscribed at pricing.

The success of the securitisation follows market leading performance from The Mortgage Lender throughout the Coronavirus pandemic when it has delivered consecutive months of record buy to let applications.

The Mortgage Lender chief executive Peter Beaumont said: “The first buy to let securitisation of assets originated and serviced by The Mortgage Lender marks a significant milestone for us. To generate positive interest from investors in the current climate is testament to the quality of the loans we are originating and the quality of the team, who have worked tirelessly to support our introducers and customers.

“Over the last six months we’ve gained market share in buy to let and look forward to being a regular originator of securitised assets moving forward. We are also investing in our capability through the expansion of our customer services team to ensure we continue to provide the support our partners and our customers need over the coming years.”

The Mortgage Lender is an intermediary-only mortgage lender. It provides real life lending choices for a wide range of buy to let borrowers.

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 the recently promoted 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.