Alternative property finance platform LendInvest has completed its second securitisation of buy-to-let (BTL) mortgages, despite adverse market conditions.
The £285m securitisation was oversubscribed by investors, while 85 per cent of the loans received an AAA rating from Fitch and S&P Global Ratings.
Rob Lockhart, chief executive of LendInvest, said that the success of the deal proves that there is still significant appetite for property-backed lending in the UK, even against a backdrop of global economic turmoil.
“When we launched the roadshow for this transaction, no-one could have predicted the full extent of the market turmoil that was about to unfold,” Lockhart 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 residential mortgage-backed securitisation (RMBS) market as emphatically as we have done with this transaction.
“Our much-improved pricing and the appetite for this transaction from both existing and new investors have proven our liquidity, our funding model and the resilience of our wider business strategy to withstand market uncertainty. This transaction ensures our levels of BTL lending needn’t dip over the coming months as the world works through this most unusual time.”
LendInvest’s first securitisation – a £259m package of property loans – was completed in June 2019. It marked the first time any UK-based fintech platform had securitised its own assets.