Mortimer BTL 2020-1 PLC: 23 March 2020
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 second public securitisation.
The provisional pool (as at 11 February 2020) consisted of 1,484 BTL loans, where the average current balance is £192,048 and the largest is for £757,500. All loans are performing and were subject to a full property valuation. Loan Purpose (by current balances): remortgage – 64.36%, purchase – 35.64%. Borrower Type: company – 63.40%, individual – 36.60%. Repayment type: Interest-only – 100%. Interest rate type: Fixed (reverting to 3 month LIBOR linked) – 100%. The WA current LTV is 72.75% (original LTV was 72.76%) and the WA seasoning is 4.91 months. Regional distribution: Greater London – 35.68%, South East – 16.90%, East of England – 9.89% and the East Midlands – 7.63%.
EU Risk Retention: LendInvest Limited will undertake that it will retain, as an original lender, on an ongoing basis, a material net economic interest of at least 5% in the securitisation as required by Article 6 of the Securitisation Regulation. As at the Issue Date, such interest will be comprised of the Retention Holder holding no less than 5% of the nominal value of each Class of Notes sold to Noteholders (including the Z Notes but excluding the X Notes).
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: Mortimer BTL 2019-1, Finsbury Square 2020-1 plc, CMF 2020-1 plc