Lendco completes £384m BTL securitization

Lendco has completed its second public mortgage-based securitization worth £384m, which it says was oversubscribed despite volatile market conditions.

The broker-only specialist lender says the deal refinances loans secured on residential properties in England and Wales held in warehouse and has been picked up by European and UK investors.

The transaction, which was finalized on May 12, was co-arranged by HSBC and BNP Paribas. The co-lead managers were HSBC, BNP Paribas and NatWest Markets.

Lendco Chief Executive Simon Knight said: “We are delighted to have completed this second securitization which secures funding for a further four years and reflects investors’ continued confidence in Lendco’s platform.

This second securitization is further proof of our desire to be a sustainable and programmatic issuer on the capital markets.

London-based Lendco, established in 2018, is a joint venture between intermediary SPF Private Clients and investment firm Cabot Square Capital.

It offers rental mortgages and bridging loans to experienced professional landlords and property investors. The firm has issued over £1 billion in loans since its launch.

The move follows the lender’s first securitization worth £314million last February, called Atlas Funding 2021-1. This pool of largely buy-to-let loans was created between 2018 and 2020, with almost 82% of properties based in London and the South East.

This refinancing also saw BNP Paribas and HSBC intervene as co-arrangers and co-lead managers. NatWest Markets acted as co-manager.

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