LendInvest has announced the completion of its latest securitisation which includes a £310.6m pool of UK prime mortgages.

The transaction is the lender’s seventh residential mortgage-backed securitisation (RMBS) under its Mortimer programme, having now issued every year since 2019.

LendInvest revealed the latest deal comprised 92.4% buy-to-let (BTL) mortgages, and 7.6% owner-occupied mortgage loans originated by its mortgages division. All 1,208 loans were performing at the cut-off date, which the group said had validated its “disciplined” underwriting approach.

The deal was oversubscribed across all tranches, while LendInvest also revealed that the senior note had received AAA ratings from Fitch and DBRS, respectively, and was priced at a spread of 81 basis points (bps) over SONIA.

“Achieving a highly competitive spread of 81 bps over SONIA for an upsized deal in the current market is a powerful testament to investors’ deep trust in the quality of the assets we originate and our robust, tech-enabled platform,” LendInvest CEO, Rod Lockhart, commented.

Following the latest RMBS, LendInvest’s total funds under management (FuM) now exceed £5.3bn, with assets under management (AuM) standing at £3.45bn.

Around £270m of the latest transaction will be used to pay down existing borrowings, which LendInvest suggested would immediately generate liquidity and headroom for future growth.

Lockhart added: “This transaction is particularly notable as it was our first trade with a pre-fund structure, accelerating our growth strategy into the coming year and further unlocking capacity to write new business across our BTL and owner-occupied divisions.”

---