The intermediary-only, specialist lender Foundation Home Loans announced it has completed its third, and largest, securitisation under the Twin Bridges platform, valued at £329m.

The lender outlined that the securitisation had taken place within a challenging wholesale funding market, highlighting that year-to-date issuance is at less than 20 per cent than it was during the same period in 2018. Further to this, it emphasised that its securitisation is the first UK residential mortgage-backed security (RMBS) buy-to-let trade this year and only the fifth mortgage securitisation of any type.

Foundation Home Loans revealed that the transaction was “massively” over-subscribed, attracting the lender’s largest order book of 41 orders totalling £832m, enabling significant price tightening as the trade progressed.

All classes of bonds were over-subscribed at least twice and the trade was done with zero new issue premium over the price at which previous Twin Bridges securitisation bonds trade in the secondary market.

Commenting, Foundation Home Loans chief executive Hans Geberbauer said: “This is a huge strategic success for the business and underlines the strength of our Treasury team at a time when some competitors have been struggling to demonstrate the reliability of their funding approach. The transaction demonstrates the confidence investors have in our proposition.

“We have recently expanded our warehouse facilities to £750m of funding commitments. The proceeds from this transaction will be directly reinvested in funding our ambitious growth plans for new mortgage originations.”

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