Shawbrook Mortgage Funding 2022-1 PLC: 16 December 2022
A standalone transaction, where the Issuer will make payments on the Notes from payments of principal and revenue received from a portfolio comprising mortgage loans and their related security originated by Shawbrook Bank Limited and secured over residential properties located in England, Wales and Scotland and sold by the Seller to the Issuer on the Closing Date. This will be Shawbrook Bank’s sixth public securitisation (see under Ealbrook & Lanebrook).
The Portfolio comprises of loans originated by the Legal Title Holder. The Legal Title Holder uses a network of brokers to originate loans. As at the date of the Prospectus, the Legal Title Holder has a managed panel of over 500 broker partners throughout the UK as well as about 120 appointed representatives.
As at the Portfolio Reference Date, the Provisional Portfolio comprises 2,354 first-ranking buy-to-let loans originated by the seller between 16 Feb 2016 and 30 June 2022 and secured over properties located in England, Wales and Scotland. The average current balance is £277,844 and the largest loan is for £2.918mln. Repayment type: interest-only – 90.76%, repayment – 9.24%. Interest rate type: Fixed Rate Loan reverting to SBBR – 83.8%, Floating rate linked to SBBR – 9.75%, Fixed – 6.46%. Loan purpose: refinancing - 80.39%, purchase – 19.61%. The WA current LTV is 65.74% (original LTV was 72.17%) and the WA seasoning is 25.81 months. Regional distribution (by current balances): South East incl. London – 35.95%, Scotland – 16.85% and the North West 9.64%.
Significant investor: On the Closing Date, the Seller will subscribe and pay for all of the Notes.
UK & EU Risk Retention: On the Closing Date the Seller will, as an originator for the purposes of the UK Securitisation Regulation and the EU Securitisation Regulation, retain on an ongoing basis a material net economic interest of not less than 5% in the securitisation in accordance with (a) the text of Article 6 of the UK Securitisation Regulation and (b) the text of the Article 6 of the EU Securitisation Regulation (as in force on the Closing Date). 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 exposure.
US Risk Retention: The Seller, as the sponsor under the US 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 US Risk Retention Rules regarding non-US 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 plc, Lanebrook Mortgage Transaction 2022-1 plc, Brass RMBS No 11 plc