LendInvest secures future lending with £285m securitisation

The lender said the move would secure its lending ability over the coming months, while other non-bank lenders are having to pull products.

LendInvest chief executive Rod Lockhart (pictured) said: “This transaction ensures our levels of BTL lending needn’t dip over the coming months as the world works through this most unusual time.”

It is the second securitisation the lender has completed in the last nine months.

The lender added that despite the “significant market turbulence” due to the Covid-19 pandemic the transaction was oversubscribed, and it took just six days to price after opening investor discussions.

The roadshow was conducted during the week commencing March 2 and the securities were issued on 19 March.

Market turmoil

The Mortimer BTL 2020-1 securitisation was £285m of UK prime buy-to-let loans with the senior tranche priced at 1.07 per cent over Sterling Overnight Index Average (SONIA) – 23 basis points better than LendInvest’s securitisation last year.

Lockhart continued: “When we launched the roadshow for this transaction, no one could have predicted the full extent of the market turmoil that was about to unfold.

“It has been a truly unprecedented and unusual environment to agree and settle a transaction as substantial as this for LendInvest – let alone the whole UK mortgage market.

“The circumstances mean it’s all the more rewarding to have returned to the RMBS market as emphatically as we have done with this transaction.”