Charter Court Financial Services Limited, under the brand name Precise Mortgages, will issue the residential mortgage-backed security.
This follows the launch of the firm’s first securitisation last year. To date, none of the firm’s 1,257 loans included in that package are in arrears.
Credit Suisse has been appointed as Arranger and Deutsche Bank and Credit Suisse will act as joint lead managers.
The Fitch and S&P rated transaction has a provisional size of £235m. The deal, to be marketed this month, will target a broad investor base and is expected to close at the end of July.
All loans in the securitisation have been originated by Precise Mortgages in the last 12 months, subject to a combination of automated and manual underwriting and credit scored using a suite of Experian scorecards.
Precise said all homeowner loans have been income verified and affordability has been stressed to a minimum of the higher of the current or reversion rate plus at least 2%, and currently 2.78%.
Buy-to-let loans have a minimum interest coverage ratio of 125% with the average being 158%. No loans are currently in arrears or have ever been in arrears since origination.
Simon Allsop, head of securitisation of Precise Mortgages, said: “We have already seen, from the first securitisation, that diversification of our funding base has allowed us to extend more loans to creditworthy individuals.
“To date we have lent over £500m in the home owner and buy-to-let spaces, yet there is undoubtedly still a significant need in the market and many consumers remain underserved. This is why we are undertaking a second securitisation, to further increase our lending ability and meet the ambitions of creditworthy homeowners and buy-to-let borrowers.”
