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Finsbury Square Plc 2017-1: 07 March 2017


A standalone RMBS deal, and very similar to the Finsbury Square 2016-2 transaction, where the issuer will make payments on the notes and the certificates from payments of principal and revenue received from a portfolio comprising mortgage loans acquired by Koala Warehouse Ltd and secured over residential properties located in England and Wales which will be purchased by the issuer on the issue date. Again, all of the mortgage loans were originated by KMC.

The seller, Koala Warehouse Limited, is an indirect wholly-owned subsidiary of Kayl Holdco. KMC is a wholly owned subsidiary of The Northview Group Limited (formerly called Kensington Group Limited). NVG is a wholly owned subsidiary of Kayl Holdco. NVG has the same ultimate shareholders as the seller and Acenden.

As at the cut-off date (30 November 2016) the mortgage pool consisted of 2,320 loans, where the average balance is £148,160 and the largest loan is for £1.097mln. Ownership Type (by current balances): Owner occupied – 84.81%, BTL – 15.19%. Repayment Method (by current balances): Repayment – 81.78%, Interest only – 16.52% and Part & Part – 1.70%. Rate Type: Fixed to Floating – 83.93%, Floating for life – 16.07%. Interest Product Type: 3 month Libor – 100.00%. Loan Purpose: Purchase – 64.20%, Re-mortgage – 34.87% and Debt consolidation – 0.94%. Additionally, self-employed account for 41.86% of the pool and there are no self-certified mortgages in the pool. The WA current LTV is 72.21% (original LTV was 73.62%) and the WA seasoning is 12.49 months. Regional concentration: South East – 24.54%, Greater London – 18.07%, the North West – 12.37% and the South West – 8.97%


CRR 405: Kayl Holdco Sàrl will undertake that it will retain, on an ongoing basis, as an originator within the meaning of Article 405, a material net economic interest of at least 5.0% of the securitised exposures in accordance with the CRR and Article 51(1)(d) of the AIFMD Level 2 Regulation and Article 254(2)(d) of the Commission Delegated Regulation (EU) 2015/35 of 10 October 2014. In order to satisfy the retention requirement on the issue date, Kayl Holdco will hold exposure to the D Notes and the Z Notes at least equal to 5.0% of the nominal value of the mortgage pool as at the issue date.

Compare/contrast: Finsbury Square 2016-2, Towd Point Mortgage Funding 2017 - Auburn 11