The lender said the securitisation had taken place within a ‘challenging wholesale funding market,’ with the year-to-date issuance at 20 per cent less than it was during the equivalent period in 2018.
It said the transaction was over-subscribed, attracting the lender’s biggest ever order book of 41 orders totaling £832m, enabling significant price tightening as the trade progressed.
All classes of bonds were over-subscribed at least twice, it said.
Hans Geberbauer, chief executive of Foundation Home Loans, said: “This is a huge strategic success for the business and underlines the strength of our Treasury team at a time when some competitors have been struggling to demonstrate the reliability of their funding approach.
“The transaction demonstrates the confidence investors have in our proposition. We have recently expanded our warehouse facilities to £750m of funding commitments. The proceeds from this transaction will be directly reinvested in funding our ambitious growth plans for new mortgage originations.”
In the last six to eight months, Aldermore, Atom Bank, the Northview Group and The Mortgage Lender have all completed securitisations worth between £235m to £600m.
Earlier this year the lender revealed it had doubled its mortgage lending in 2018 to £400m and was seeking similar growth this year.
