Darrowby No. 5 plc: 25 February 2020
After an absence of four years, Skipton Building Society returns to the market with its fifth public securitisation where, again, the underlying assets consist of first lien prime mortgage loans to individuals secured by property located in the UK. Skipton is the UK's fourth largest building society and, as at 30 June 2019, the Society together with its subsidiaries had total group assets of £24.2 billion.
The initial portfolio at the cut-off date (31 December 2019) consists of 5,859 loans advanced on 5,373 properties and none of the loans were in arrears at the time of the cut-off date. The average current loan balance is £151,390 and there are 66 loans of greater than £500,000 (representing 5.02% of current portfolio value). In each case, the first monthly payment has been paid by the borrower.
Repayment type (by current balances): repayment 93.67%, interest only 4.34% and part & part 1.99%. Interest Payment Type: Fixed 89.81%, Tracker 8.06% and others 2.13%. Loan Purpose (by current balances): purchase 58.19%, re-mortgage 37.17%, debt consolidation 4.65%. The WA current indexed LTV is 60.82% (original LTV was 69.26%) and the WA seasoning is 2.23yrs. Regional concentration (by current balances): the South East 18.57%, Greater London 11.78%, Scotland 11.47%, the North West 10.53 and the South West 10.26%.
Note: The Additional Loans to be sold to the Issuer on any Additional Sale Date and to be included in the Portfolio were all made no earlier than 1 June 2001 and may be originated on or after 31 December 2019.
Significant Investor: Skipton Building Society will, on the closing date, purchase all of the Class B Notes and may purchase some of the Class A Notes.
EU Risk Retention: Skipton Building Society as originator will undertake that it will, on an on-going basis, retain a material net economic interest of at least 5% of the nominal value of the securitised exposures in accordance with and as required by Article 6(1) of Regulation (EU) 2017/2402. As at the Closing Date, such interest will be comprised of an interest in the first loss tranche, in this case the Class B Notes, in accordance with Article 6(3)(d) of the Securitisation Regulation
US Risk Retention: The Seller, as the sponsor under the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, does not intend to retain at least 5% of the credit risk of the Notes for the purposes of the U.S. Risk Retention Rules, 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.
STS: Skipton Building Society as originator has procured that, on or about the date of this transaction, a notification is to be submitted to the European Securities and Markets Association in accordance with Article 27 of the Securitisation Regulation that the requirements of Articles 19 to 22 of the Securitisation Regulation have been satisfied with respect to the Notes.
Compare/contrast: Darrowby RMBS 4, Friary No 6 plc, Silverstone Master Issuer 2020-1