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Stratton Mortgage Funding 2024-3: 16 June 2024

Essentially a re-financing of Stratton 20-1 & 21-3, with an additional commercial mortgage portfolio.

A stand-alone 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 sold on the Closing Date by Ertow Holdings XII and originated by the Originators and secured over residential properties located in England, Wales, Northern Ireland and Scotland.

The underlaying assets will be: a portfolio of mortgage loans originated by the Stratton 2020 Originators; a portfolio of mortgage loans originated by the Stratton 2021 Originators; and a portfolio of mortgage loans originated by the Wylam Originators and secured over commercial properties located in England.

The portfolio consists of 3,267 mortgage loan accounts (Stratton 2021 – 1,882 loans/48.35%, Stratton 2020 – 1,370/45.60%, and Wylam – 15/6.05%) where the average current balance per loan is £109,361 and the largest is for £6.004 mln. Overall there are 3,108 sets of borrowers in the pool, and it is secured on 3,213 properties. Occupancy Type (by current balances): Owner-Occupied – 79.00%, BTL – 14.950%, N/A (Wylam) – 6.05%. Repayment Method (by current balances): interest only – 88.79%, repayment – 10.81% and P&P – 0.40%. Current arrears: 1 month or more in arrears – 4.04%, 3 month or more in arrears – 19.15%. The WA indexed current LTV is 54.56% (original LTV was 85.43%) and the WA seasoning is 17.61 years. Regional distribution: Greater London – 21.02%, the South East – 12.91%, North West – 12.77% and Yorks & Humber – 10.14%.

EU & UK Risk Retention: On the Closing Date Burlington Loan Management (the Retention Holder) will, as an originator for the purposes of the Securitisation Regulations, retain on an ongoing basis a material net economic interest of not less than 5% in the securitisation as required by Article 6(1) of the EU Securitisation Regulation and Article 6(1) of the UK Securitisation Regulation.

US Risk Retention: The Retention Holder, 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.

Compare/contrast: Stratton Mortgage Funding 2020-1, Stratton Mortgage Funding 2021-3