By Daniel Lanyon on Friday 20 March 2020
Despite the crash in the broader market, the property finance-focused fintech lender says investor demand was high.
Market volatility may have been near a generational high but LendInvest has completed its second securitisation of Buy-to-Let mortgages in what it says was oversubscribed residential mortgage-backed securities (RMBS) transaction.
The securitisation comprised £285m of UK prime Buy-to-Let (BTL) mortgage loans and LendInvest says it took just six days to price the transaction after opening investor discussions. It received an AAA(sf) rating (for 85% of the pool) from Fitch and S&P Global Ratings, the global credit rating agencies.
The transaction - Mortimer BTL 2020-1 - will allow the firm to maintain buy-to-let lending levels during the ongoing fallout in the broader economy owing to the global shutdown and spread of the coronavirus.
Rod Lockhart, Chief Executive of LendInvest, said: "It has been a truly unprecedented and unusual environment to agree and settle a transaction as substantial as this for LendInvest - let alone the whole UK mortgage market... The circumstances mean it’s all the more rewarding to have returned to the RMBS market as emphatically as we have done... This transaction ensures our levels of BTL lending needn’t dip over the coming months as the world works through this most unusual time.”
Despite everything that was going on, there was a demand from both new and existing investors to participate in this transaction. Investors were comforted by our two credit rating agencies' assessments of our ability to service loans and deliver returns in some of the most stressed conditions," Lockhart added.
LendInvest securitised £259m of UK prime Buy-to-Let mortgage loans in June 2019, its first foray into this type of funding.