Bluestone completes inaugural securitisation

Ryan Fowler

September 2, 2019

Bluestone Mortgages has raised £210m through its inaugural residential mortgage backed securitisation, Genesis 2019-1.

The bonds issued as part of Genesis were rated by both DBRS and Standard & Poors rating agencies and consisted of a portfolio of 1,091 mortgages with a weighted average LTV of 67%.

Peter McGuinness, group CEO at Bluestone, said: “Securitisation has been core to Bluestone’s DNA since 2000, with the wider Bluestone group having completed in excess of 25 transactions across residential and equity release mortgages and motor finance loans.

“Completing Genesis before the end of the summer has been the target and is a testament to the quality of the portfolio we have originated; we are delighted to welcome a new set of institutional investors to the platform.

“With the shadow being cast by Brexit over the near term, our focus has been on clearing out the warehouse facilities and ensuring the business has a robust funding position going into 2020 to support the strong origination growth we are seeing.”

Over the past 12 months the business has processed in excess of £520m in mortgage applications from accredited intermediaries.

Bluestone’s core proposition is the provision of owner occupied and buy-to-let first charge residential mortgages to borrowers who do not conform to traditional high street lending criteria.

The Group has also just completed its sixth securitisation of motor finance receivables in Ireland, raising €48m through the issue of Bonds by Topaz 2019-1 DAC. The bonds are backed by a portfolio of consumer hire purchase agreements provided to customers who typically find it harder to source motor finance from manufacturers or high street banks.

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