Gosforth Funding Plc 2017-1: 27 September 2017
The ninth stand-alone transaction in the Gosforth series where the underlying assets are a portfolio comprising mortgage loans originated by NRAM plc and subsequently transferred to Virgin Money plc, and originated by Virgin Money plc, and secured over residential properties in England, Scotland and Wales.
The provisional mortgage portfolio (as at 31 May 2017) comprises 11,118 mortgage loans with an average current balance of £178,412. The largest current balance is £600,994 and there are 138 loans of greater than £500,000 in the portfolio (representing 3.78% of current balances). Employment status (by aggregate current balances): full time 75.24%, self employed 22.80%. Loan product type (by aggregate current balances): fixed 91.03%, variable 8.97%. Repayment type (by aggregate current balances): Re-payment 95.48%, interest only 4.52%. The WA current LTV is 62.64%, the WA current indexed LTV is 59.76% and the WA seasoning is 22.78mnths. Regional concentration (by aggregate current balances): South East 27.53%, Greater London 23.85%, Scotland 9.29%, the South West 9.13% and the North West 6.92%.
Significant Investor: Virgin Money will, on the Closing Date, purchase 5% of the Class A1a Notes, 100% of the Class A1b Notes, 5% of the Class A2 Notes, 100% of the Class M Notes and 100% of the Class Z Notes.
CRR/405: Virgin Money will undertake, on behalf of the note-holders, that it will retain a material net economic interest of at least 5% in accordance with each of Article 405 of Regulation (EU) No.575/2013 and Article 51 of Regulation (EU) No 231/2013. As at the Closing Date such interest will be comprised of an interest in the Class Z Notes, as required by Article 405 of the CRR and Article 51 of the AIFMR.
US Risk Retention: Virgin Money as “sponsor” for the purposes of Section 15G of the Exchange Act is required to acquire and retain an economic interest in the credit risk of the Mortgage Loans sold by the Seller to the Mortgages Trustee on the Closing Date or on a Transfer Date. Virgin Money intends to satisfy the US Risk Retention Requirements by acquiring and retaining an eligible vertical interest equal to 5% in each Class of Notes, including in each sub-Class of the Class A1 Notes, and 5% in all amounts owing under the Subordinated Loan Agreement.
Compare/contrast: Gosforth Funding 2016-2, Charter Mortgage Funding 2017-1, Castell Finance 2017-1