The securitisation has coincided with the lender’s fourth year of business, and the transaction was upsized from an initial target of £286m to a final placement of £297m.
The portfolio comprises BTL loans originated by Quantum Mortgages, secured against residential properties in England, Wales and Northern Ireland.
The lender said the transaction attracted strong interest from a range of institutional investors, highlighting the continued demand for UK BTL mortgage assets and specialist lending platforms.
The senior Class A notes achieved final book coverage of 1.6 times and priced at SONIA plus 80 basis points (bps).
The deal was arranged by HSBC as lead arranger, alongside Citi and Lloyds Bank as joint lead managers. The transaction was sponsored by global alternative investment manager AB CarVal, Quantum Mortgages’ primary funding partner.
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The lender said this was also the first UK BTL residential mortgage-backed securitisation (RMBS) since the introduction of the Renters’ Rights Act.
Jason Neale (pictured), chief executive of Quantum Mortgages, said: “This is another important step forward for us. Three securitisations in under two years show we are no longer a new entrant. We are now an established issuer in the capital markets, meaning we can confidently continue providing our intermediary partners with more flexible mortgage options for their clients.
“Investors know and appreciate what they’re getting with Quantum, consistent origination, disciplined underwriting and assets that perform. The level of demand we’ve seen again underlines confidence in both our platform and the wider UK BTL sector.”
