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Tudor Rose Mortgages 2020-1: 01 July 2020

A stand-alone issue, where the issuer will make payments on the notes from payments of principal and revenue on a portfolio comprising of mortgage loans originated by Axis Bank UK Ltd, and secured over residential BTL properties located in England and Wales. Axis Bank UK Limited commenced its banking operations in April 2013 after receiving regulatory approval. Among its other businesses it also lends to the specialist buy-to-let sector. However, it suspended accepting new applications for BTL mortgage loans in February 2020.

Morgan Stanley Principal Funding, Inc. (the Seller and the Retention Holder) is a wholly owned subsidiary of Morgan Stanley. It acquired the beneficial title to the Mortgage Loans from Axis Bank UK Limited pursuant to the portfolio transfer agreement dated 4 June 2020.

At the cut-off date (31 January 2020) the portfolio consisted of 1,020 loans, advanced against 1,020 properties and 671 borrower “sets”. The average current balance is £294,627 and the largest is £2.537mln. Borrower type (by current balances): individual – 62.58%, commercial – 37.42%. Repayment type (by current balances): interest only – 99.57%, annuity – 0.43%. Interest rate type: Fixed rate loan with compulsory future switch to floating – 93.01%, others – 6.99%. The WA CLTV is 69.74%, the WA ILTV is 69.35% (OLTV was 69.85%) and the WA seasoning is 2.28 years. Regional concentration (by current balances): London – 64.32%, the South East 17.98% and the East of England – 6.99%.

EU Risk Retention: Morgan Stanley Principal Funding will, as at the closing date until the final maturity date or the date on which the notes are fully redeemed in full, retain a material net economic interest of not less than 5% in the securitisation as required by Article 6. This will be satisfied by the Retention Holder holding the economic interest in not less than 5% of the nominal value of each class of notes sold to investors.

US Risk Retention: The Retention Holder intends to comply with the requirements by acquiring on the closing date and retaining, either directly or through a majority-owned affiliate, the US risk retained interest in the form of an eligible vertical interest equal to not less than 5% of each class of notes and 5% of the certificates.

Compare/contrast: Canterbury Finance No.2 plc, CMF 2020-1 plc