LendInvest has securitised £259 million of UK prime buy-to-let mortgage loans in an oversubscribed RMBS transaction.
The securitisation received an AAA rating (for 83% of the securitisation) from both Moody’s and Fitch.
The senior tranche for the inaugural issue was priced at 130bps over SONIA.
LendInvest launched its buy-to-let product in late 2017 after initially receiving funding from Citigroup for the product. It reported in its most recent financial results that it originated nearly £130 million of buy-to-let mortgage loans in the six months to 31 March 2019.
Christian Faes (pictured), CEO of LendInvest, said: “This is a significant milestone for LendInvest. This securitisation provides us with funding that is cheaper than if we were a small deposit-taking bank, and proves out our business model and its scalability. We are building a new type of financial services business that can properly take on and challenge the banks in this market.
“The securitisation received strong support from the market, with new institutions coming into the fold, and buying loans originated through the LendInvest platform.”