Keystone Property Finance completes largest securitisation

The Hops Hill No. 4 securitisation transaction contains £560m worth of BTL loans originated by the lender, including prefunding of 15%.

The securitisation also includes loans from Hops Hill No. 2, the lender’s first securitisation issued in 2021. In May 2024, it will be called in.

The firm said that there was “strong demand from multiple investors” and senior notes were one-and-a-half times and mezzanine notes over three times oversubscribed.

It is the fourth public securitisation Keystone has completed since relaunching in 2018, and the second where it has been the servicer.

Elise Coole, managing director of Keystone Property Finance, said: “Over the past six years, we have gone from strength to strength, going from a new entrant to becoming one of the go-to lenders in the specialist buy-to-let market. This securitisation marks the next step in that journey.

“We are delighted with how well this has gone and seeing the Hops Hill issuance develop over time with each new securitisation. The fact it has priced so attractively and garnered strong interest among investors is a testament to our underwriting criteria and the teams that work hard every day, alongside our broker partners, all of which are committed to the great outcomes.

“We are always strategically looking forward, and we will continue to evolve our offering and our product set to ensure that they remain relevant to our broker partners and their clients. This deal allows us to continue that good work.”

Marko Feiertag of TwentyFour Asset Management added: “We have been working together with Keystone as sponsor of the Hops Hill platform for more than five years. The financial markets were very challenging the last couple of years, and we have been impressed throughout the journey with the strong management team at Keystone reacting quickly to challenges and being able to implement new innovative products in a short time with their robust inhouse IT platform.

“Keystone’s expertise extends beyond the management team to the underwriting, risk, servicing and IT department, which results in the strong loan performance seen over the last five years.

“We are delighted to work together with the Keystone team and thrilled how well-established the Hops Hill funding platform has become attracting new investors on their latest transaction. We look forward to many more successful years of collaboration.”

Keystone Property Finance recently launched product transfers with additional borrowing and has revised its specialist and expat mortgage ranges.