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Dilosk RMBS No. 2: 15 November 2018

Another stand-alone transaction under the Dilosk name. On this occasion the issuer will make payments on the notes from payments of principal and revenue on a portfolio comprising mortgage loans which were originated by GE Capital Woodchester (1,092 loan parts / 45.64% of capital balances) and Leeds Building Society (718 loan parts / 54.36% of capital balances) and are secured over residential properties located in Ireland. The loans were subsequently sold by The Governor and Company of the Bank of Ireland to Dilosk Limited and then on-sold by the Legal Title Holder to Dilosk Funding No.4 Limited, and will be purchased by the issuer on the closing date.

Dilosk Limited was incorporated in Ireland as a private company on 4 August 2013. The entire issued share capital of Dilosk comprises class A and class B shares all of which are owned by: Fergal McGrath (CEO), Dr Oran McGrath (COO) and three other private shareholders. Dilosk was established as a new and alternative residential mortgage lender in the Irish market and trades under the recently acquired ICS Mortgages brand. The primary business of Dilosk is the origination and funding of residential mortgage loans in Ireland with a particular focus on Buy-To-Let mortgages.

At the cut-off date (31 July 2018), the portfolio consisted of 1,810 loan parts advanced to 1,744 borrowers, where the average capital balance by loan part is Eur160,258 and the largest is for Eur1.126mln. Repayment type (by current balances): repayment 55.23%, interest only 44.56% and P&P 0.22%. Interest rate type: variable 85.27%, fixed 14.73%. First-Time Buyer: No 68.23%, Yes 31.77%. Borrower Employment Status: Employed 88.82%, Self-employed 10.17%. Occupancy type: Owner-occupied 100.0%. Months in Arrears status (by capital loan part balances): 1.01 to 2.00 – 3.67%, 2.01 to 3.00 – 1.82%. The WA current LTV (indexed) is 68.89%, the original LTV was 61.96% and the WA seasoning is 10.98 years. Regional concentration: Dublin 31.03%, Mid-East Region 16.54%, South-West Region 13.01%, South-East Region 13.00% and the Border Region 8.16%.

Significant Investor: On the Closing Date the Retention Holder will acquire (i) 100% of the Class X Notes, (ii) 100% of the Class R Notes (following which the Retention Holder will transfer 95.0% of the Class R Notes to the DF5 Seller on the same day) and (iii) at least 5% of the nominal value of each of the other Classes of Notes in compliance with its risk retention requirements.

EU Risk Retention: On the Closing Date, the Retention Holder (Barclays Bank PLC) will acquire at least 5% of each of the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes, the Class E Notes, the Class F Notes, the Class Z1 Notes, the Class Z2 Notes, the Class R Notes and the Class X Notes, to be held in compliance with its risk retention requirements.

Compare/contrast: Dilosk No.1, Ardmore Securities No.1, Dublin Bay Securities 2018-1