The company, parent of LendInvest BTL and LendInvest Loans, completed the £310.6m oversubscribed transaction comprising 92.43% UK prime buy-to-let (BTL) and 7.57% owner-occupied loans originated by its mortgages division.
This is LendInvest’s seventh RMBS transaction since 2019 and the group said all the loans were performing at the cut-off date, which demonstrated its disciplined underwriting approach.
Some £270m of the £310m proceeds will be used to pay off existing debt, which would generate liquidity and headroom for the lender to grow. This is in addition to around £5.5m of unrestricted cash, which is available to be reinvested across the group, used to pay down debt or support cash buffers.
Following the transaction, LendInvest’s total funds under management now exceed £5.3bn, while its assets under management stand at £3.45bn.
Since its launch, the lender has provided more than £8bn in property finance to support investors and homeowners across the UK.
Rod Lockhart, chief executive of LendInvest, said: “I am delighted to announce the completion of our seventh successful securitisation.
“Achieving a highly competitive spread of 81bps over SONIA for an upsized deal in the current market is a powerful testament to investors’ deep trust in the quality of the assets we originate and our robust, tech-enabled platform.”
He added: “This transaction is particularly notable as it was our first trade with a pre-fund structure, accelerating our growth strategy into the coming year and further unlocking capacity to write new business across our BTL and owner-occupied divisions. Together with our continued success in diversifying funding sources, such as our 8.25% bond, this is a clear sign that LendInvest is positioned strongly for future growth.”
Hugo Davies, chief capital officer and managing director of the mortgages division at LendInvest, said: “Successfully launching both our seventh securitisation and a new retail bond in short order demonstrates the strength of our funding engine and the trust institutional investors place in our platform.
“Following these successful funding initiatives, the mortgages division is positioned to deliver origination volumes that are anticipated to be significantly ahead of the previous year.”
