LendInvest has completed its eighth residential mortgage-backed securitisation under the Mortimer programme, pricing a £300m portfolio of UK prime buy-to-let mortgages in a transaction that achieved a lower overall funding cost than its equivalent deal last year.
Mortimer 2026-1 Plc is backed by a core portfolio of £265m across 1,240 buy-to-let mortgage loans originated and serviced by LendInvest BTL Limited, with a £35m pre-fund alongside. All 1,240 loans were performing at the cut-off date. The portfolio carries a weighted average current loan-to-value ratio of 73.23% and weighted average rental cover of 177.25%.
The transaction attracted strong institutional demand across the capital structure. Class A notes, rated AAA by Fitch and Morningstar DBRS, were 2.5 times oversubscribed; Class B 3.8 times; Class C 4.4 times. The Class A notes priced at 82bps over SONIA, broadly in line with the 81bps achieved on Mortimer 2025-1. The weighted average cost of funding came in at 88bps, however, against 92bps for the 2025 deal.
Mortimer 2026-1 is also LendInvest's first securitisation to qualify as a UK Simple, Transparent and Standardised securitisation. The STS framework is designed to make securitisations easier for investors to assess and, subject to applicable requirements, can provide preferential capital treatment for certain investors. The designation extends LendInvest's potential institutional investor base, including bank treasury investors.
The Mortimer programme has provided LendInvest with a repeatable route to institutional capital markets funding since its first transaction in 2019. The latest deal is the eighth under the programme and forms part of a broader funding mix that includes institutional partnerships, bank facilities and other capital markets arrangements.
"The successful completion of our eighth Mortimer securitisation demonstrates the strength of LendInvest's access to institutional capital," said Rod Lockhart, chief executive of LendInvest (pictured).
"We saw strong demand across the capital structure and achieved a lower overall cost of funding than last year's transaction, despite a more challenging market environment.
"This is also our first UK STS securitisation, broadening the potential investor base for our assets and further strengthening the Mortimer programme as an important part of our funding platform."
"The strength of demand across the capital structure, including from bank treasury investors, reflects the broad institutional appetite for LendInvest's mortgage assets," he added. "It also demonstrates the strength and depth of the investor relationships we have built through the Mortimer programme."
