LendInvest completes securitisation of BTL mortgages

LendInvest announced it has completed its second securitisation of buy-to-let (BTL) mortgages in an oversubscribed RMBS transaction, Mortimer BTL 2020-1.

The property finance platform suggested that despite significant market turbulence from the global spread of the coronavirus, it took LendInvest six business days to price the transaction after opening investor discussions.

The transaction also came only nine months after LendInvest had entered the RMBS market with its first securitisation of £259m BTL loans, Mortimer BTL 2019-1.

The latest securitisation, which comprised £285m of UK prime BTL mortgage loans, received an AAA rating – for 85% of the pool – from global credit rating agencies, Fitch and S&P Global Ratings. Furthermore, LendInvest revealed the senior tranche was priced at 1.07% over SONIA – an improvement of 23bps from LendInvest’s securitisation last year.

LendInvest chief executive, Rod Lockhart, commented: “When we launched the roadshow for this transaction, no one could have predicted the full extent of the market turmoil that was about to unfold. It has been a truly unprecedented and unusual environment to agree and settle a transaction as substantial as this for LendInvest – let alone the whole UK mortgage market.

“The circumstances mean it’s all the more rewarding to have returned to the RMBS market as emphatically as we have done with this transaction.

“Our much improved pricing and the appetite for this transaction from both existing and new investors have proven our liquidity, our funding model and the resilience of our wider business strategy to withstand market uncertainty. This transaction ensures our levels of BTL lending needn’t dip over the coming months as the world works through this most unusual time.”

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