The Northview Group has completed a £600m securitisation backed by new Kensington Mortgages.
This was The Northview Group’s ninth securitisation, as it has securitised £4bn of mortgages since 2015.
The transaction was increased from an initial size of £420m.
Alex Maddox, (pictured) capital markets and product development director, said: “This transaction is further evidence of Northview’s strong track record in accessing the UK securitisation market, with the pricing and the large size a reflection of continued investor confidence in our securities – which reflects the high quality of the new mortgages written under our Kensington brand name.
“High quality investors want access to the high-quality mortgage customers being sourced through Kensington’s unsurpassed underwriting.
“With the Bank of England bringing its crisis-era Term Funding Scheme to an end, an increasing number of lenders have started to access the securitisation markets again as an alternative source of funding.”
The loans in the securitisation pool have an average loan-to-value of 73% with an average interest rate of 3.8%. The pool included also 20% buy-to-let loans. Less than 1% of the borrowers in the portfolio securitised were more than one month in arrears at the time of closing.