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Elvet Mortgages 2018-1: 12 October 2018

A standalone transaction and the first issuance from originator Atom Bank, where the Issuer will make payments on the notes from payments of principal and revenue received from a portfolio comprising mortgage loans and their related security sold to the Issuer on the closing date. The Issuer confirms that the assets backing the issue of the Notes and the Notes themselves are not part of a re-securitisation.

Atom Bank is the UK's first bank built exclusively for smartphone and tablet. Founded in early 2014, it started its operations in April 2016. The Seller has no branches; its headquarters are in Durham and it has a satellite office in London. Atom Bank is authorised by the Prudential Regulation Authority and is regulated by the FCA and PRA. The bank uses, in addition to its other sources of funds, customer deposits to fund loans to small businesses and homeowners in the UK. As at 31 March 2018, the Seller had £1,303,374,000 of Sterling-denominated fixed-term customer deposits and £136,419,000 of Euro-denominated fixed-term customer deposits. As at 31 March 2018 the Seller had total assets of £1,957,331,000.

As at the Portfolio Reference Date, the Provisional Portfolio was comprised of 3,186 loans originated by the Seller between October 2017 and July 2018. The average current balance is £179,404 and the largest is for £1.376 mln. Occupancy type: owner-occupied – 100.0%. Amortization type (by current balances): Repayment – 100.0%. Interest Rate type: Fixed rate mortgages reverting to SVR – 100.0%. Additional information: a full property valuation accounts for 77.70% of current balances; Self-employed borrowers account for 6.16%; First time buyers account for 11.42%. The WA current LTV is 71.51% (original LTV was 72.24%) and the WA seasoning is 3.68 months. Regional concentration: Greater London – 16.86%, South East – 16.64%, North West – 11.52% and Scotland – 10.65%.

Significant Investor: Atom Bank will, on the Closing Date, purchase all of the Class Z Notes and will purchase some of the Class A Notes.

EU Risk Retention: On the Closing Date Atom Bank will, as an originator for the purposes of the CRR, the AIFM Regulation and the Solvency II Regulation, retain on an ongoing basis a material net economic interest of not less than 5% in the securitisation in accordance with the text of each of Article 405 of Regulation (EU) No 575/2013, Article 51 of Regulation (EU) No 231/2013 and Article 254 of Regulation (EU) 2015/35. As at the Closing Date, such interest will comprise retention of a net economic interest of not less than 5% of the nominal value of the securitised exposures in the form of the Class Z Notes and Tranche A of the Subordinated Loan.

US Risk Retention: The Seller, as the sponsor under the U.S. Risk Retention Rules, does not intend to retain at least 5% of the credit risk of the securitised assets for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, as amended, but rather intends to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non-U.S. transactions.

Volcker Rule: The Issuer is of the view that it is not now, and immediately after giving effect to the offering and sale of the Notes and the application of the proceeds thereof on the Closing Date will not be, a "covered fund" (together with such implementing regulations) for purposes of regulations adopted under Section 13 of the Bank Holding Company Act of 1956, as amended (commonly known as the "Volcker Rule").

Compare/contrast: Charter Mortgage Funding 2018-1, Gosforth Funding Plc 2018-1, Twin Bridges 2018-1