Second Charge Lending
Sedgwick: Securitisation market ‘awash with lenders this year’
Lenders are increasingly turning to the securitisation market for funding sources after the end of the Term Funding Scheme (TFS).
Speaking at the Financial Services Expo, Keystone Property Finance CEO David Whittaker suggested the end of the Bank of England’s TFS could result in funding costs rising for lenders and a corresponding increase in interest rates.
However, Vida Homeloans director of sales – mortgages Louisa Sedgwick (pictured) queried whether this would be the case as more lenders were choosing the securitisation route.
“We work within the securitisation market and this time last year when we were looking to securitise a book we were one of very few lenders who sat in that market,” she said.
“But as Funding for Lending [and TFS] has ended and lenders are looking to fund in different ways the securitisation market is awash with lenders this year.
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“By comparison to last year we’re starting to see different funding which means that money might be potentially cheaper and washing around more readily.
“So what effect that might have on interest rates in general is probably yet to be seen,” she added.