Blog post
March 20, 2020

We’ve completed our second securitisation despite the odds

It’s stating the somewhat obvious to say that we are currently living through one of the most peculiar and unusual times that any of us can ever remember. Yet, business continues as usual at LendInvest and we’re incredibly proud of what we can get done despite all the turbulence.

Today we’ve completed our second securitisation of Buy-to-Let mortgages in another oversubscribed RMBS transaction, Mortimer BTL 2020-1.

Despite significant market turbulence from the global spread of the Coronavirus and an international oil dispute, it took LendInvest six business days to price the transaction after opening investor discussions.

The securitisation, which comprised £285 million of UK prime Buy-to-Let (BTL) mortgage loans, received an AAA rating (for 85% of the pool) from Fitch and Standard & Poor’s, the global credit rating agencies. The senior tranche was priced at 1.07% over SONIA; this is 23bps tighter than our inaugural deal signalling confidence in our offer.

Rod Lockhart, Chief Executive of LendInvest, 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.”

We proudly remain the only UK Fintech platform to have ever securitised its own assets and are delighted that this transaction could happen just nine months after our first.

Today’s success is testament to a heck of a lot of hard work and tenacity on the part of so many people around our business in really hard circumstances. As Rod says above, we were determined not to let the circumstances hold us back and are thrilled with the outcome.

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