LendInvest has achieved a significant milestone with its sixth securitisation, amidst economic uncertainties.
- The £285m transaction, named ‘Mortimer 2024-Mix Plc’, was oversubscribed and highly rated by financial agencies.
- This marks LendInvest’s first securitisation of owner-occupied loans, broadening their market scope.
- Involving major banks as arrangers, the securitisation attracted keen investor interest.
- The accomplishment strengthens LendInvest’s financial position, managing £4.67bn in funds.
LendInvest has successfully completed its sixth securitisation, marking another achievement in the company’s strategic growth. Despite prevailing economic uncertainties, particularly concerns about a potential downturn anticipated by many IFAs, LendInvest has managed to secure a significant £285 million transaction. This particular securitisation, referred to as ‘Mortimer 2024-Mix Plc,’ was not only oversubscribed but also attained high ratings from prominent financial agencies such as S&P Global Ratings and Moody’s. These ratings, Aaa(sf) and AAA(sf) respectively for 86.5% of the loan pool, underscore the confidence in the quality of LendInvest’s assets.
This transaction is noteworthy as it includes LendInvest’s first securitisation involving owner-occupied loans. By venturing into the owner-occupied market, LendInvest is broadening its financial services scope, reflecting its adaptability and forward-thinking approach. This move comes as part of their RMBS programme, which has seen consistent annual execution since its inception in 2019, reflecting the company’s steady progress.
The involvement of major financial institutions such as BNP Paribas, Citi, JP Morgan, Lloyds, and National Australia Bank Limited as joint arrangers and managers highlights the scale and importance of this transaction. With a senior tranche priced at 0.83% over SONIA, the securitisation has proven attractive to investors, with 17 different parties participating. This demonstrates LendInvest’s capability to meet investor demand effectively, even amid potential macroeconomic challenges.
The funds raised through this securitisation push LendInvest’s total funds under management to an impressive £4.67 billion, showcasing their robust financial health. Since its foundation, LendInvest has facilitated over £7.5 billion in property finance, offering competitive solutions for property investors and homeowners across the UK. This accomplishment solidifies LendInvest’s reputation as a reliable and innovative entity in the property finance industry.
Chief Executive Officer Rod Lockhart expressed his satisfaction with the securitisation’s outcome, noting it as a milestone for the company. Lockhart stated, “The strong response from investors and our competitive pricing underscores the market’s trust in LendInvest, our expanding RMBS range with the inclusion of owner-occupied loans, and our commitment to delivering value through high-quality assets.” Despite uncertainties such as the impact of forthcoming UK budget announcements, Lockhart highlighted the vitality of the buy-to-let market, evidenced by a dramatic 270% increase in buy-to-let offers compared to the previous year.
LendInvest’s sixth securitisation symbolizes its steady progression and strategic market expansion.
