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Livemore completes first social bond RMBS valued at £208.1m
Later life mortgage lender Livemore has completed a residential mortgage-backed securitisation (RMBS) at a value of £208.1m.
The Exmoor Funding 2024-1 was Livemore’s first transaction under its social bond framework and comprises prime and near prime owner-occupied mortgages.
The transaction was also successfully assessed for the Capital Requirements Regulation (CRR) and Liquidity Regulation (LCR), both of which assess how financially resilient a lender is.
Livemore said it believed the RMBS transaction was the first securitisation in the UK to include retirement interest-only (RIO) mortgages.
It said this was “notable” because the take-up of RIOs was mostly driven by social and demographic changes.
The transaction is covered by Livemore’s social bond framework, which it launched last year as part of its environmental, social and governance (ESG) strategy. Social bonds are used to contribute to projects and initiatives with a positive social impact.
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The transaction was structured to comply with the International Capital Market Association’s (ICMA’s) social bond principles.
A second opinion was issued by ISS ESG, which said Livemore’s business purpose to target later life borrowers who are under-served by traditional lenders made it an eligible project under the ICMA principles.
It said this supported the lender’s aim of reducing inequality and serving a social purpose.
Simon Webb (pictured), Livemore’s managing director of finance and capital markets, said: “This is a notable transaction, not only because it demonstrates the significant growth of Livemore over recent years, but it clearly shows market confidence in later life lending as a financially sound investment.
“The securitisation plays a key part in Livemore’s continuing growth and expansion as we work to fill the gap caused by the shortfall in quality mortgage finance for later life borrowers.”
Livemore launched in 2020 to offer mortgages to borrowers between the ages of 50 and 90-plus. It has amended its offering recently, including the increase of its maximum loan and a widening of adverse credit criteria.