Precise launches £163m securitisation deal
The Fitch and Standard & Poor’s rated transaction has a provisional size of £163.75m including a prefunding element of 20%.
The deal, to be marketed in November, will target a broad investor base and is expected to close in the first half of December.
Sebastien Maloney, chief financial officer of Precise Mortgages, said: “The launch of our securitisation programme is positive news for both investors and borrowers as the diversification of our funding base will allow us to extend more loans to credit worthy individuals while offering institutional investors an opportunity to participate in a programmatic shelf.”
CCFS, acting under its brand name Exact Mortgage Experts, shall retain servicing of the portfolio with Credit Suisse appointed as arranger and lead manager.
All loans in the transaction have been originated by Precise Mortgages in 2013 and have been subject to a combination of automated and manual underwriting. All have also been credit scored using a suite of Experian scorecards and all home owner loans are income verified and affordability has been stressed to reversion rate + 2%.
Buy-to-let loans have a minimum interest coverage ratio of 125% with the average being 149% and no loans are currently in arrears or have ever been in arrears since origination.