Property finance platform LendInvest has completed its second securitization that was said to be oversubscribed during a time of intense volatility. LendInvest said that it securitized £285 million of prime buy to let (BTL) loans – 9 months after its first securitization. The first securitization was for £259 million BTL loans.
The securitization was received a AAA(sf) rating (for 85% of the pool) from Fitch and S&P Global Ratings. The company said the senior tranche was priced at 1.07% over SONIA*; or 23bps better than LendInvest’s securitization last year.
Rod Lockhart, Chief Executive of LendInvest, said when they launched the roadshow for this securitization, 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,” said Lockhart.
He added that the interest in the offering from both new and existing investors has proven out the funding model and the overall resilience of their broader strategy during a time of 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.”
LendInvest points to the fact that it is the only UK Fintech platform to have securitized its own assets.
LendInvest adds that it is one of few mortgage lenders to use Open Banking, a time-saving, tech-enabled service to which over two-thirds of its BTL customers subscribe; and the company is typically able to make a BTL mortgage offer faster than its offline competition.
LendInvest has lent more than £3 billion of property finance to UK borrowers since 2008.
Citi acted as Sole Arranger. Citi, National Australia Bank, and JP Morgan acted as Joint Lead Managers.