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Oak No. 4 Plc: 26 May 2023

The fourth in the Oak series of RMBS deals, where the Issuer will make payments on the Notes from payments of principal and revenue received from a portfolio comprising mortgage loans originated by Aldermore Bank plc and secured over residential properties located in England and Wales, which will be purchased by the Issuer on the closing date.

The provisional portfolio will consist of 2,520 loans originated by the Seller between August 2010 and January 2023 and secured over properties located in England and Wales. The current average loan size is £174,980 and the largest outstanding loan is for £999,965. Use of Proceeds (by current balances): Purchase – 56.54%, re-mortgage 43.46%. Repayment Terms: Repayment – 93.64%, Interest Only – 6.36%. Product Types: Fixed rate loan with compulsory future switch to floating – 95.34%, Floating – 3.79%, Discount – 0.86%. The WA current LTV is 57.60% (original 66.57%) and the WA seasoning is 23.26 months. Regional concentration (by current balances): South East – 21.34%, Greater London – 14.30%, East Anglia – 13.52%, North West – 11.92% and the South West – 10.69%.

UK & EU Risk Retention: Aldermore will undertake that it will retain a material net economic interest of at least 5% in the securitisation (for the life of the transaction) in accordance with Article 6 of the Securitisation Regulation. As at the Closing Date such interest will be comprised of an interest in the first loss tranche, in this case the Class Z VFN, as described by the text of Article 6(3) of the Securitisation Regulation.

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: The transaction is intended to qualify as an STS securitisation within the meaning of Article 18 of the Regulation (EU) 2017/2402.

Compare/contrast: Oak No.3, Holmes Master Issuer (2023-1), Elstree Funding No.3