LendInvest Mortgages completes sixth securitization of £285 million UK prime Buy-to-Let and owner-occupied mortgage loans.
LendInvest plc (LSE: LINV), the UK’s platform for property finance and the parent company of LendInvest BTL Ltd and LendInvest Loans Limited, announces the completion of its sixth securitization in “prime UK property loans originated by its Mortgages division.”
The £285m oversubscribed transaction, “Mortimer 2024-Mix Plc” received Aaa(sf) and AAA(sf) ratings from S&P Global Ratings and Moody’s, respectively, “for 86.5% of the loan pool.”
This transaction marks LendInvest’s sixth consecutive annual securitization since launching the program in 2019, and includes its first “securitization of owner-occupied loans since launching into this growing market in 2023.”
The securitization delivered pricing supported by 17 investors – demonstrating confidence in LendInvest-originated collateral.
The senior tranche priced at “83bps over SONIA.”
The issuance brings LendInvest’s total Funds under Management (FuM) to £4.67 billion.
To date, LendInvest has helped lend “over £7.5 billion” in property finance, supporting property investors and homeowners “across the UK in securing competitive finance solutions.”
BNP Paribas and Citi acted as “Joint Arrangers,” with JP Morgan, Lloyds and National Australia Bank Limited, Citi and BNP Paribas acting “as Joint Lead Managers.”
Rod Lockhart, CEO of LendInvest, commented that he is pleased to announce the completion of their sixth securitization, marking another milestone since they launched their RMBS program back in 2019.
Lockhart pointed out that the strong response from investors and their competitive pricing underscores “the market’s trust in LendInvest, their expanding RMBS range with the inclusion of owner-occupied loans, and our commitment to delivering value through high-quality assets.”
Lockhart also stated that this securitization exemplifies their “capability to meet investor demand while continuing to grow responsibly.”
The update is an example of market confidence in LendInvest, coming on the back of a “£1.5bn funding agreement” with JP Morgan and a renewed warehouse facility on improved terms with HSBC, BNP Paribas and Barclays.
The company also saw a record “£250m in BTL offers between August and October – a 270% improvement on the same period last year.”
Lockhart added that despite macro uncertainty around, for example, what the UK budget would bring, they’re “continuing to see really healthy activity in the BTL market – as our 270% increase in BTL offers year on year demonstrates.”
LendInvest’s RMBS program provides investors with exposure to UK property assets, generating monthly income from a pool of mortgage loans.
Each RMBS adheres to strict regulatory standards, including “risk retention and detailed loan disclosure, ensuring a clear alignment of interests between LendInvest and its investors.”
By retaining a portion of each transaction, LendInvest reinforces its commitment to loan quality and to “delivering dependable, income-generating investments – while freeing up capital for new lending.”
As covered, LendInvest is the UK’s platform for property finance.
LendInvest offers short-term, development and buy-to-let mortgages to intermediaries, landlords and developers.
Its tech and user experience are designed to make it simpler for borrowers and investors to access property finance.
LendInvest has reportedly lent “over £3bn” of short term, development and buy to let mortgages.
Its funders and investors include institutions like HSBC, Citigroup and NAB, and, in 2019, it was reportedly the first Fintech to securitize a “portfolio of BTL mortgages.”