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Gemgarto 2018-1 plc: 31 July 2018

This will be the fourth transaction in the series of Gemgarto deals and comes to market some 2½ years after the last transaction. All the loans were advanced to owner-occupiers via Kensington Mortgages.

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 Limited respectively and secured over residential properties located in England and Wales. The Kensington Group is a wholly owned indirect subsidiary of Kayl Holdco.

At the cut-off date (15 June 2018), the portfolio will consist of 1,210 loans with an average balance of £177,620 and a largest loan of £1.20mln. There are only 8 loans of £500,000 or greater in the pool. All loans have been made to owner-occupiers and none have been self-certified. Loan purpose (by current balances): purchase 75.54%, re-mortgage 18.48% and debt consolidation 5.98%. Repayment method (by current balances): repayment 95.19%, interest-only 3.43% and part & part 1.38%. Interest rate type: Fixed to Floating 100.00%. Self-Employed account for 36.44% of the pool. The WA original LTV was 76.06% and the WA current LTV is 75.83%. WA seasoning is 8.6 months. Regional distribution (by current balances): East of England 15.83%, South East 15.33%, North West 12.32% and London 10.67%.

CRR 405: Kayl Holdco Sàrl will undertake in the Retention Letter that it will retain, on an ongoing basis as an originator, a material net economic interest of at least 5% in the securitisation, in accordance with the CRR and Article 51(1)(a) of the AIFMD Level 2 Regulation and Article 254(2)(a) of the Commission Delegated Regulation (EU) 2015/35 of 10 October 2014. Kayl Holdco will hold exposure to the F Notes and the Z Notes in an amount such that the total nominal value of exposure to the F Notes and the Z Notes held by it is at least equal to 5% of the nominal value of the Mortgage Pool.

US Risk Retention: Kayl Holdco (in such capacity the "U.S. Risk Retention Holder") intends to comply with the requirements by acquiring on the Issue Date and retaining, either directly and/or through one of its majority-owned affiliates, the U.S. Risk Retained Interest in the form of an eligible horizontal residual interest equal to at least 5% of the fair value of the Notes and Certificates as determined under U.S. generally-accepted accounting principles.

Compare/contrast: Gemgarto 2015-2, Finsbury Square 2018-1 plc, Charter Mortgage Funding 2018-1