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Atlas Funding 2021-1 UK BTL: 03 February 2021

A stand-alone issue, where the Issuer will make payments on the Notes from payments of principal and revenue received from a portfolio comprising buy-to-let mortgage loans and their related security originated by Lendco Limited and secured over residential properties located in England and Wales and sold by Lendco to the Issuer on the Closing Date.

Lendco Limited was previously registered under the name Atlas Property Finance Limited and was renamed on 26 April 2018. Lendco is a private limited company and is a provider of unregulated buy-to-let mortgage financing for the purpose of purchasing or refinancing residential properties in England and Wales which are to be held as investments and let to unrelated third parties. As of 30 November 2020, Lendco has originated approximately £342m of BTL mortgage loans.

As at the closing date the portfolio consisted of 731 interest-only first ranking mortgages, where the average current loan balance is £415,174 and the largest is for £3.525mln. All properties are with Full Internal and External Valuations. Borrowers: Company – 62.46%, individuals – 37.54%. Loans by Rate Type: Fixed to Floating – 94.75%, other – 5.25%. The WA current LTV is 69.03% (original LTV was 69.06%) and the WA seasoning is 14.75 months. Regional distribution: London – 68.91%, South East – 12.91%, South West – 7.26%.

Significant investor: On the Closing Date, Lendco will purchase 5% of the aggregate principal amount of each of the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E Notes, and 100% of the aggregate principal amount of each of the Class Z1 Notes and the Class Z2 Notes.

EU & UK Risk Retention: On the Closing Date the Seller (Lendco) will, as originator for the purposes of the EU Securitisation Regulation and the UK Securitisation Regulation, retain on an ongoing basis a material net economic interest of not less than 5% in the securitisation as required by Article 6(1) of the UK Securitisation Regulation and as determined in accordance with Article 6 of the EU Securitisation Regulation as required for the purposes of Article 5(1)(d) of the EU Securitisation Regulation. As at the Closing Date, such interest will be satisfied by the Seller holding no less than 5% of the nominal value of each Class of Notes sold to investors (with the exception of the Class X notes).

US Risk Retention: The Seller does not intend to retain at least 5% of the credit risk of the securitised assets for purposes of compliance with 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.

Compare/contrast: Elstree Funding No.1, Paragon Mortgages (No 28) plc, Avon Finance No.2 plc