Precise will launch the public residential mortgage-backed security programme in December having appointed Credit Suisse as arranger and lead manager.
The bond, Precise Mortgage Funding No. 1, has a provisional size of £163.75m including a prefunding element of 20%. The deal will be marketed later this month and a statement said it would target a ‘broad investor base’.
All loans in the transaction have been originated by Precise during 2013 and have been subject to Experian credit scoring plus a combination of automated and manual underwriting.
All homeowner loans have been income verified and affordability has been stress tested to reversion rate +2%. The fund is a mix of buy-to-let and residential mortgages, the latter all with a minimum interest coverage ratio of 125%.
Precise’s sister firm Exact Mortgage Experts will service the portfolio following its securitisation.
Sebastien Maloney, chief financial officer of Precise Mortgages commented: “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 creditworthy individuals.”