LendInvest has completed its second securitisation of buy-to-let mortgages in an oversubscribed RMBS transaction, Mortimer buy-to-let 2020-1.
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 securitisation, which comprised £285 million of UK prime buy-to-let mortgage loans, received an AAA(sf) rating (for 85% of the pool) from Fitch and S&P Global Ratings, the global credit rating agencies. The senior tranche was priced at 1.07% over SONIA; this is 23bps better than LendInvest’s securitisation last year.
Rod Lockhart, chief executive of LendInvest, said: “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 buy-to-let lending needn’t dip over the coming months as the world works through this most unusual time.”
This transaction comes only nine months after LendInvest entered the RMBS market with its first securitisation of £259 million buy-to-let loans, Mortimer buy-to-let 2019-1.