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Hops Hill No.3 PLC: 01 June 2023

A stand-alone transaction, where the issuer will make payments on the Notes from a portfolio comprising mortgage loans originated by Keystone Property Finance to borrowers secured on properties in England and Wales, and to be acquired by the issuer from the Beneficial Title Seller. Keystone is an intermediary-only, specialist BTL lender owned by The Property Business Group.

The reference portfolio (as at 28 February 2023) consists of 1,079 sets of borrowers (1,425 mortgage loan accounts) and is secured on 1,425 properties. The average loan balance is £230,966 and the largest is £2.550mln. Loan purpose: re-mortgage – 56.07%, purchase – 43.93%. Redemption type: interest-only – 93.79%, other – 6.21%. Interest rate type: fixed – 97.78%, other – 2.22%. The WA current LTV is 70.76% (original LTV was 70.90%) and the WA seasoning is 9.68 months. Regional concentration: London – 40.09%, South East – 17.58% and the North West 12.49%.

UK & EU Risk Retention: The Beneficial Title Seller (UK Mortgages Corporate Funding) will, as an “originator” for the purposes of Article 6 of Regulation (EU) 2017/2402 of the European Parliament and Article 6 of the EU Securitisation Regulation as it forms part of domestic law in the United Kingdom, retain a material net economic interest in the securitisation of not less than 5% in accordance with (i) Article 6 of the EU Securitisation Regulation and (ii) Article 6 of the UK Securitisation Regulation. As at the Closing Date, the Retention Holder shall retain the EU Minimum Required Interest and the UK Minimum Required Interest by holding no less than 5% of the nominal value of each tranche sold or transferred to investors on the Closing Date.

US Risk Retention: The Beneficial Title Seller does not intend to retain 5% for the purposes of compliance with the US Risk Retention Rules, but rather intends to rely on an exemption provided for in Section 20 of the US Risk Retention Rules.

STS: No notification will be submitted to ESMA.

Compare/contrast: Hops Hill No.2, Twin Bridges 2023-1, Curzon Mortgage plc