Lace Funding 2025-1 PLC: 07 February 2025

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 originated by Nottingham Building Society and secured over residential properties located in England and Wales.

Nottingham Building Society was formed in 1849. As at 31 December 2023, based on its asset value NBS was a top ten building society in the United Kingdom with total assets of £4.5 billion. NBS currently operates 31 branches across 8 counties.

As at the Portfolio Reference Date, the Provisional Mortgage Portfolio consisted of 2,182 repayment mortgage loans originated by NBS between 2018 and 2024 and secured over properties located in England and Wales. The average current loan balance is £198,565, with the largest being £711,280. Loan purpose: purchase – 54.92%, re-mortgage – 45.08%. Product type: fixed – 95.54%, variable – 4.46%. The WA current LTV is 65.16%, indexed LTV is 61.42% (original LTV was 69.81%) and the WA seasoning is 25.14 months. Regional concentration: South East – 13.79%, Yorkshire and the Humber – 13.18%, North West – 12.93% and Greater London – 12.71%.

UK & EU Risk Retention: On the Closing Date, the Seller will retain on an ongoing basis a material net economic interest of not less than 5% in the securitisation as an "originator" through its holding of the Class Z Notes in accordance with the UK Risk Retention Requirements and the EU Risk Retention Requirements.

US Risk Retention: The transaction is not intended to involve the retention by a sponsor of at least 5% of the credit risk of the securitised assets for purposes of compliance with the US Risk Retention Rules, but rather is intended to rely on an exemption provided for in Section 20 of the US Risk Retention Rules regarding non-US transactions.

STS: The Seller will, within 15 calendar days of the Closing Date, procure a notification to be submitted to the FCA, in accordance with SECN 2.5 of the UK STS Requirements, that the UK STS Requirements have been satisfied with respect to the Notes.

Compare/contrast: Friary No.9, Citadel 2024-1 plc, Winchester 1 plc