Lanebrook Mortgage Transaction 2020-1 PLC: 30 September 2020
A stand-alone transaction, where the Issuer will make payments on the notes from a portfolio comprising mortgage loans originated by The Mortgage Lender Ltd to borrowers secured on properties in England, Wales, and Scotland, and such mortgages sold to the seller prior to the closing date.
As at the Portfolio Reference Date, the Provisional Portfolio comprises 2,220 first-ranking buy-to-let loans originated by the seller between 27 June 2018 and 29 May 2020 and secured over properties located in England, Wales and Scotland. All loans were subject to a full property valuation. The average current balance is £160,687 and the largest loan is for £2.580mln. Repayment type: interest-only – 93.12%, repayment – 6.88%. Interest rate type: Fixed Rate Loan reverting to LIBOR – 99.96%, Floating rate – 0.04%. Loan purpose: refinancing - 66.49%, purchase – 33.51%. The WA current LTV is 71.47% (original LTV was 72.59%) and the WA seasoning is 12.33 months. Regional distribution (by current balances): South East incl. London – 55.64%, Scotland – 8.45% and the North West 8.45%.
Significant Investor: On the Closing Date, the Seller will subscribe for all of the Class A2 Notes.
EU Risk Retention: On the Closing Date the Seller (Shawbrook Bank) will, as an originator for the purposes of the Securitisation Regulation, retain on an ongoing basis a material net economic interest of not less than 5% in the securitisation in accordance with the text of Article 6 of Regulation (EU) No 2017/2402. As at the Closing Date, the Retention will be satisfied by the Seller selecting and holding a pool of randomly selected exposures equivalent to not less than 5% of the nominal value of the securitised exposures.
US Risk Retention: The Seller, as the sponsor under the U.S. Risk Retention Rules, does not intend to retain at least 5% of the credit risk of the securitised assets for purposes of compliance with the final rules promulgated under Section 15G of the Securities Exchange Act of 1934, 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: As at the Closing Date, no notification will be submitted to the European Securities and Markets Authority (ESMA) 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: Shawbrook Mortgage Funding 2019-1, Canterbury Finance No.3 plc, Elvet Mortgages 2020-1