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Gemgarto 2021-1 plc: 27 February 2021

This will be the fifth transaction in the series of Gemgarto deals and comes to market some 2½ years after the last transaction. All the loans were advanced to owner-occupiers via Kensington Mortgages.

The Issuer will make payments on the Notes and the Certificates from payments of principal and revenue received from a portfolio comprising mortgage loans acquired by Kensington Holdco Limited and secured over residential properties located in England, Wales and Scotland which will be purchased by the Issuer (i) on the Issue Date and (ii) on any date during the Further Sale Period, in accordance with the conditions applicable to such period. Substitution of the Loans contained in the Mortgage Pool may occur in accordance with the terms described in the prospectus.

At the cut-off date (31 December 2020), the portfolio will consist of 2,826 owner-occupied loans with an average balance of £168,615 and a largest loan of £1.050mln. There are 57 loans of £500,000 or greater in the pool, accounting for 7.59% of current balances. All loans have been made to owner-occupiers and none have been self-certified. Loan purpose (by current balances): purchase - 74.75%, re-mortgage - 18.70% and debt consolidation - 6.55%. Repayment method (by current balances): repayment - 95.42%, interest-only - 3.12% and part & part - 1.46%. Interest rate type: fixed to floating - 88.32%, floating – 11.68%. Self-Employed account for 36.44% of the pool. The WA original LTV was 73.28% and the WA current LTV is 69.32%. WA seasoning is 15.26 months. Regional distribution (by current balances): South East - 16.69%, East of England - 13.64%, North West - 12.23% and London - 9.85%.

EU & UK Risk Retention: KHL will undertake that it will retain on an ongoing basis, as an originator within the meaning of (i) the UK Securitisation Regulation and (ii) EU Securitisation Regulation, a material net economic interest of at least 5% in the securitisation, as required by (i) Article 6 of the UK Securitisation Regulation and (ii) Article 6 of the EU Securitisation Regulation. As at the Issue Date, the UK Retention Requirement and EU Requirement will each be satisfied by KHL holding the exposure to the E Notes and the Z Notes in an amount such that the total nominal value of exposure to the E Notes and the Z Notes held by it is at least equal to 5% of the nominal value of the Mortgage Pool.

US Risk Retention: KHL, as a "sponsor" for the purposes of the U.S. Risk Retention Rules, is required under the U.S. Risk Retention Rules to acquire and retain the U.S. Risk Retained Interest. KHL intends to comply with the requirements by acquiring on the Issue Date and retaining, either directly and/or through one of its majority owned affiliates, an EHRI equal to at least 5% of the fair value of the Notes and Certificates as determined under U.S. generally accepted accounting principles.

STS: KHL will, on the Issue Date, submit a notification to the FCA as the relevant competent authority in the UK, in accordance with Article 27 of the UK Securitisation Regulation, confirming that the requirements of Articles 19 to 22 of the UK Securitisation Regulation have been satisfied with respect to the Notes.

Compare/contrast: Gemgarto 2018-1, Elstree Funding No.1