Keystone completes record £40m lending in March and opens latest funding line

The busy start to the year means the forward funding portion of Keystone’s first securitisation, which was completed in January worth £400m, has now been fulfilled.

In a statement to the stock exchange, funding partner UK Mortgages Limited (UKML) revealed this loan pool performance had been “extremely strong” despite the pandemic, with no loans currently in arrears.

Just 29 payment holidays were granted from more than 1,900 loans originated, almost all of which had already begun repayments of their deferred amounts, it added.

Keystone will now start using a new warehouse funding line sooner than expected, with “an extremely healthy pipeline of well over £100m”.

This Cornhill Mortgages No.7 warehouse facility is intended to fund Keystone’s portfolio growth to a size suitable for a further securitisation.

Speaking to Specialist Lending Solutions in January, Keystone Property Finance managing director Elise Coole said it was likely this second warehouse would be completed much quicker.

“It’s unlikely the next securitisation will take two and a half years to complete – I think it will be quicker depending on how swiftly we can build the completions,” she said.

Commenting on the latest data Coole (pictured) added: “We have had a fantastic start to 2021, which included coming to market with our first ever securitisaton, and as we slowly return to a new normal I’m hugely excited about what the rest of the year has in store.

“Last month was a record for originations, and the second warehouse facility we have just completed will ensure we have plenty of capital to continue growing our lending for the rest of the year and beyond.’’

Sale of portfolios

TwentyFour Asset Management joined UKML in completing the warehouse funding for Keystone with the facility arranged by Santander Corporate and Investment Banking.

UKML also said it had agreed the sale of two Coventry portfolios, with one sale and the resultant first tender already completed and the second sale and subsequent tender expected to take place in late May and early June respectively.