Tower Bridge Funding 2021-1: 26 March 2021
This will be the sixth public securitisation from Belmont Green and, as per the earlier transactions, the Issuer will make payments on the Notes from payments of principal and revenue received from a portfolio comprising mortgage loans originated by BGFL, under its trading name Vida Homeloans, secured over residential properties located in England, Wales and Scotland.
For the full list of lending criteria, please see the relevant section in the final offering circular.
At the cut-off date (14 February 2021) the provisional pool consisted of 1,496 loans, where the current average balance is £193,252 and the largest loan is for £995,830. All were subject to a full internal and external inspection. Occupancy type (by current balances): BTL 59.91%, owner-occupied 40.09%. Repayment type (by current balances): interest-only 61.10%, repayment 38.30%, P&P 0.60%. Interest Rate type: fixed to floating 89.72%, floating (for life) 10.28%. Loan purpose: purchase 52.10%, re-mortgage 46.18% and right to buy 1.73%. The WA current LTV is 71.77% (original LTV 72.05%) and the WA seasoning is 5.79 months. Regional concentration: Greater London 33.80%, South East 17.59% and East of England 12.21%. Additional information: self-employed account for 33.32% of balances; CCJs account for 15.10% of balances.
EU & UK Risk Retention: On the Issue Date, BGFL will undertake that it will retain on an ongoing basis, as an originator within the meaning of (a) the UK Securitisation Regulation and (b) the EU Securitisation Regulation, a material net economic interest of not less than 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 Retention Requirement will each be satisfied by BGFL holding the first loss tranche, in this case a 100% interest in the Z1 Notes and the Z2 Notes.
U.S. Risk Retention Rules: BGFL (in its capacity as the U.S. Retention Holder) intends to satisfy the requirements of the U.S. Retention Rules by acquiring on the Issue Date and retaining, either directly and/or through one of its majority owned affiliates, not less than 5% of the credit risk of the “securitized assets” in the form of an eligible horizontal residual interest in an amount equal to at least 5% of the fair value of the Notes and Certificates as determined under U.S. generally accepted accounting principles. As at the Issue Date, the U.S. Retained Interest will be satisfied by BGFL acquiring and, to the extent required, retaining through the Sunset Date an EHRI, in this case 100% of the Z1 Notes, the Z2 Notes, the RC1 Certificates and the RC2 Certificates.
STS: As at the closing date, no notification will be submitted to ESMA in accordance with Article 27.
Compare/contrast: Tower Bridge Funding 2020-1, Canada Square Funding 2021-1, Gemgarto 2021-1 plc