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Mortimer BTL 2019-1 PLC: 24 June 2019

A stand-alone transaction, where the Issuer will make payments on the Notes and the Certificates from payments of principal and revenue received from a portfolio comprising buy-to-let mortgage loans originated by LendInvest BTL Limited and secured over Residential Properties located in England, Wales and Scotland. This will be LendInvest’s first public securitisation.

LendInvest BTL Ltd is a company whose purpose is advancing unregulated buy-to-let loans for the purpose of financing or refinancing acquisitions of Residential Properties in England, Wales and Scotland. LendInvest BTL Limited is a wholly owned subsidiary of LendInvest Loan Holdings Limited, a company incorporated under the laws of England and Wales.

The group (via the Seller) funds, among other products, buy-to-let loans for experienced property landlords for the purposes of building an investment portfolio and/or refinancing existing loans. As at the date of the Prospectus, the group did not engage in consumer lending activity (i.e. lending to individuals who are not using the loans for the purposes of carrying out business activities).

The provisional pool (as at 10 May 2019) consisted of 1,140 BTL loans, where the average current balance is £227,352 and the largest is for £1.352 mln. All loans are performing, and were subject to a full property valuation. Loan Purpose (by current balances): remortgage – 72.35%, purchase – 27.65%. Borrower Type: company – 57.00%, individual – 43.00%. Repayment type: Interest-only – 100%. Interest rate type: Fixed (reverting to 3 month LIBOR linked) – 100%. The WA current LTV is 71.65% (original LTV was 71.67%) and the WA seasoning is 5.50 months. Regional distribution: Greater London – 38.49%, South East – 17.23%, East of England – 9.57% and the South West – 9.26%.

EU Risk Retention: LendInvest Limited will undertake that it, directly or indirectly through its indirect subsidiary LendInvest BTL Limited, will retain on an ongoing basis, as an originator within the meaning of Regulation (EU) 2017/2402, a material net economic interest of at least 5% in the securitisation, as required by Article 6 of the Securitisation Regulation. In order to satisfy the EU Retention Requirement on the Issue Date, LendInvest Limited will hold exposure, directly or indirectly through its indirect subsidiary LendInvest BTL Limited, to the E Notes and the Z Notes in an amount such that the total nominal value of exposure to the E Notes and the Z Notes held by it is at least equal to 5% of the nominal value of the Mortgage Pool on the Issue Date, so as to hold exposure to the Retained Interest at not less than the EU Retention Requirement.

US Risk Retention: The transaction is not intended to involve the retention by a sponsor of at least 5% of the credit risk of the securitised assets for purposes of compliance with the U.S. Risk Retention Rules, but rather it is intended to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non-U.S. transactions.

Compare/contrast: Precise Mortgage Funding 2019-1B, Shawbrook Mortgage Funding 2019-1 plc