Northview Group closes £600m securitisation deal

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  • 29/11/2018
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Northview Group closes £600m securitisation deal
The Northview Group (NVG) closed its ninth securitisation this month backed by Kensington Mortgages new originations, with a £600m bond issuance that has been sold to a broad group of investors.

 

The transaction was upsized during the process from an initial size of £420m.

The deal is the second-largest transaction secured by the recent originations of the Northview Group.

NVG has now securitised £4bn of mortgages since 2015, comprised of new originations issued by its Kensington Mortgages business.

The loans in the securitisation pool reflect the lending by Kensington Mortgages.

The average loan to value (LTV) at the time of the transaction was 73%, with a weighted average interest rate of 3.8%.

The pool included also 20% buy-to-let loans. Less than 1% of the borrowers in the portfolio securitised were more than one month in arrears at the time of closing.

There were no self-certified loans in the portfolio and only 30% of the mortgages were secured against properties in London and the South East.

Across all of Kensington’s lending since 2010, only 11 properties have been repossessed with a cumulative loss of £117,000.

Alex Maddox, capital markets and product development director (pictured), said that this transaction is further evidence of Northview’s strong track record in accessing the UK securitisation market, with the pricing and the large size a reflection of continued investor confidence in securities.

“High quality investors want access to the high-quality mortgage customers being sourced through Kensington’s unsurpassed underwriting.

“With the Bank of England bringing its crisis-era term funding scheme to an end, an increasing number of lenders have started to access the securitisation markets again as an alternative source of funding.”

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