Gemgarto 2023-1 plc: 17 December 2023

This will be the sixth transaction in the series of Gemgarto deals and comes to market almost three 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, the portfolio will consist of 3,059 owner-occupied loans with an average balance of £187,457 and a largest loan of £970,639. There are 74 loans of £500,000 or greater in the pool, accounting for 8.13% of current balances. All loans have been made to owner-occupiers and none have been self-certified. Loan purpose (by current balances): purchase - 94.19%, re-mortgage - 2.22% and debt consolidation - 3.59%. Repayment method (by current balances): repayment - 98.43% and part & part - 1.57%. Interest rate type: fixed to floating - 99.86%, floating – 0.14%. Self-Employed account for 25.98% of the pool. The WA original LTV was 85.71% and the WA current LTV is 84.33%. WA seasoning is 14.92 months. Regional distribution (by current balances): South East - 14.44%, North West - 14.33%, Yorkshire and the Humber – 9.87% and the East of England - 9.76%.

UK & EU Risk Retention: On the Closing Date, Barclays Bank PLC (the Retention Holder) will retain, as sponsor, on an ongoing basis, a material net economic interest of not less than 5% in the securitisation in accordance with Article 6(1) of the UK Securitisation Regulation and Article 6(1) of the EU Securitisation Regulation. As at the Closing Date, such interest will be comprised of the Retention Holder holding no less than 5% of the nominal value of each Class of Notes and a 5% interest in the Senior Deferred Consideration.

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 the 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: On the Closing Date, it is intended that a notification will be submitted to the FCA by, or on behalf of, Kensington Mortgage Company Limited, as originator, and Barclays Bank PLC, as sponsor, in accordance with Article 27 of the UK Securitisation Regulation, confirming that the requirements of Articles 19 to 22 of the UK Securitisation Regulation for designation as a UK STS securitisation have been satisfied with respect to the Notes.

Compare/contrast: Gemgarto 2021-1, Elvet Mortgages 2023-1, Twin Bridges 2023-2