Stratton Mortgage Funding 2024-1: 28 January 2024

Essentially a re-financing of the Stratton Mortgage Funding 2021-2 transaction.

A stand-alone transaction where the Issuer will make payments on the Notes, the Certificates and the VRR Loan Note from payments of principal and revenue received from a portfolio comprising the Mortgage Loans, the equitable or beneficial interest in which will be sold by the Seller, and which were purchased by the Seller from Citibank NA London Branch and secured over predominantly residential properties located in England, Wales, Scotland and Northern Ireland which will be purchased by the Issuer from the Seller on the Closing Date. The Portfolio was acquired by the Sponsor from NRAM Limited and Bradford and Bingley plc.

The provisional portfolio (as at 31 October 2023) consists of 9,658 loans secured over 8,034 properties located in England, Wales, Scotland or Northern Ireland. The average account balance per loan is £110,060, with the largest being £4.442mln. Occupancy Status at Origination (by current balances): BTL – 55.53%, owner-occupied – 44.47%. Repayment Type (by current balances): Interest Only – 92.03%, repayment – 5.93%, P&P – 2.04%. Interest Rate Type: Variable – 99.91%, Fixed – 0.09%. Months in Arrears: Greater or equal to 3 Months in Arrears – 11.24%. The WA current indexed LTV is 55.17% and the WA seasoning is 16.86 years. Regional concentration: Greater London – 21.56%, North West – 13.84%, Outer Metropolitan – 9.27% and Yorks & Humber – 8.19%.

EU & UK Risk Retention: Burlington Loan Management (the Retention Holder) will, as an originator, retain a material net economic interest of not less than 5% in the securitisation in accordance with (i) Article 6 of Regulation (EU) 2017/2402) and (ii) Article 6 of Regulation (EU) 2017/2402 as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018. As at the Closing Date, such interest will comprise retention by the Retention Holder of 5% of the nominal value of each Class of the Collateralised Debt (for which purpose the Combined Class A Debt is a single Class) issued by the Issuer on the Closing Date.

US Risk Retention: The Retention Holder, as sponsor, intends to satisfy the US Credit Risk Retention Requirements by acquiring and retaining a minimum of 5% of the nominal value of each Class of the Debt and Residual Certificates, representing at least 5% of all "ABS interests" issued by the Issuer as of the Closing Date.

Compare/contrast: Stratton Mortgage Funding 2021-2