OneSavings Bank to offer H2B mortgages in 2014
The announcement follows the bank’s first securitisation transaction, Rochester Financing No. 1 PLC, which will sell £253m of Class A mortgage backed securities, expected ratings AAA/AAA from S&P and Fitch, and £20m of Class B mortgage backed securities, expected ratings AA+/AA from S&P and Fitch.
Andy Golding, group chief executive of OneSavings Bank, said: “This transaction represents strategic diversification of our funding profile and extends the maturity of our liabilities whilst validating the high quality of our asset base.”
He said that these latest moves demonstrated its commitment to providing quality mortgage lending across a range of niche market segments including residential, buy-to-let, second charges and Small and Medium sized Enterprises.
Stephan Wilcke, OneSavings Bank chairman, said: “This is another important milestone in the turnaround and growth plan for OSB establishing ourselves as a challenger bank.
“Our current trading both in volume and profitability is ahead of our previous expectations and we are cautiously optimistic about the future.”
Earlier this week Paul Broadhead, head of mortgage policy at the Building Societies Association, said that smaller lenders would want to weigh up the benefits of capital relief with the additional costs associated with joining the Help to Buy scheme such as reporting more information to the regulator.
He said: “If you are a lender that has done securitisation before you will be able to adopt this much quicker because you are used to providing all this information required by the Prudential Regulation Authority in order to be eligible for capital relief.
” It could be more challenging for lenders who have not done securitisation before.”