Tower Bridge Funding No.4: 13 July 2019
As the title indicates, this will be the fourth public securitisation from Belmont Green and, as per the earlier transactions, the issuer will make payments on the notes from payments of principal and revenue received from a portfolio comprising mortgage loans originated by BGFL, under its trading name Vida Homeloans, secured over residential properties located in England and Wales.
Eligibility criteria (includes): each loan must be secured by a first ranking legal mortgage (a “Mortgage” over a freehold or leasehold residential property) in England or Wales; loans will be granted on residential property offered as acceptable security in England and Wales subject to acceptable valuation. Use of all properties will be for residential purposes as a private dwelling only; minimum property valuation for Owner Occupied Properties is £70,000 for all property types, £125,000 for ex local authority flats/maisonettes outside of Greater London and £200,000 for ex local authority flats/maisonettes within Greater London; minimum property valuation for Buy-To-Let Properties is £50,000 for all property types, £125,000 for ex local authority flats/maisonettes outside of Greater London and £200,000 for ex local authority flats/maisonettes within Greater London; unacceptable tenure includes: leasehold houses, flats and maisonettes with less than 40 years lease remaining from the date on which the loan was originated for repayment loans, or not less than 70 years lease remaining from the date on which the loan was originated for interest only loans.
For the full list of lending criteria, please see the relevant section in the final offering circular.
At the cut-off date (31 May 2019) the provisional pool consisted of 1,989 loans, where the current average balance is £186,059 and the largest loan is for £975,106. All were subject to a full internal and external inspection. Occupancy type (by current balances): BTL 74.26%, owner-occupied 25.74%. Repayment type (by current balances): interest-only 73.25%, repayment 26.75%. Interest Rate type: fixed to floating 99.76%, floating (for life) 0.24%. Loan purpose: re-mortgage 58.87%, purchase 38.41%, right to buy 2.72%. The WA current LTV is 71.40% (original LTV 71.54%) and the WA seasoning is 4.38 months. Regional concentration: Greater London 43.16%, South East 16.49% and East of England 10.70%. Additional information: self-employed account for 39.64% of balances; CCJs account for 9.16% of balances.
CRR 405: BGFL, as an originator for the purposes of the CRR, the AIFMR and Solvency II, will retain on an ongoing basis a material net economic interest of at least 5% in the securitisation in accordance with Article 405 of the CRR, Article 51 of the AIFMR and Article 254 of Solvency IIAs. At the issue date, the retention will comprise BGFL holding no less than 5% of the nominal value of each tranche of notes and certificates sold or transferred to investors.
U.S. Risk Retention Rules: This transaction will be subject to the credit risk retention requirements and an economic interest in the credit risk of the securitised assets is expected to be retained. The retention will represent at least 5% of all “ABS interests” represented by an interest in each tranche of the notes and certificates.
Volcker Rule: The Issuer is of the view that it is not now and, immediately following the issuance of the notes and the application of the proceeds thereof, it will not become a “covered fund” as defined in the regulations adopted under Section 13 of the Bank Holding Company Act of 1956, commonly known as the “Volcker Rule”.
STS: As at the closing date, no notification will be submitted to ESMA in accordance with Article 27.
Compare/contrast: Tower Bridge Funding No.3, Ciel No. 1 plc, Mortimer BTL 2019-1 plc