Kensington Mortgages accepts £ 472million social bond securitization


Kensington Mortgages has agreed to a securitization worth £ 472million, which the specialist lender says is “a critical part of the funding cycle” allowing it to target underserved lending markets.

The lender said the oversubscribed deal attracted 28 investors to four loan tranches at a total cost of 66 basis points in the UK residential mortgage-backed securities market.

Kensington sells mortgages to the self-employed, people with multiple incomes and those over 55.

He says its history of lending to underserved people has enabled the deal to be “the first labeled social bond from a specialist lender,” accredited by the corporate governance body, the Institutional Shareholder Services Group. .

Kensington has issued more than £ 12 billion of bonds in the RMBS market since 2015, which he says is the highest amount raised by a specialist lender.

The company says: ‘The refinancing of Kensington owner-occupied UK home loans through the issuance of RMBS is a vital part of the funding cycle that allows Kensington to profitably reinvest and help people underserved to access banking and socio-economic services. by owning real estate that acts as a main residence.

Kensington Mortgages Chief Financial and Digital Officer Alex Maddox adds: “We look beneath the surface and consider complex and multiple sources of income and lend to those who fail the automated lending process that most Retail banks rely and struggle otherwise to own a home. “

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