Foundation Home Loans executes mixed-pool buy-to-let and owner-occupation securitisation

Foundation Home Loans, the intermediary-only specialist lender, has announced it has successfully executed its first Residential Mortgage-Backed Securitisation (RMBS) backed by a mixed portfolio of both buy-to-let and owner-occupied mortgage loans.

The securitisation, titled Braccan 2024-1, priced on 4 September, with Foundation seeking to sell £550m of mortgage loans. The new shelf sits alongside the well-established Twin Bridges (buy-to-let) and Brants Bridge (owner-occupied) programmes.

Steve Vance, director of Capital Markets at Foundation Home Loans, said: “The transaction was met with strong investor interest, with Class As achieving a price of 84 basis points over SONIA, with the final book size ending at £925m from 26 unique investors. The new deal reinforced our strong financial position, providing additional capacity to grow lending activities over the next 12 months and beyond.”

Pete Ball, CEO of Foundation Home Loans, said: “We are very pleased to announce the completion of this £550m securitisation, the first in which we have both mixed buy-to-let and owner-occupation mortgage loans, and the first sterling RMBS deal to have priced after the summer.

“We have achieved excellent pricing for this transaction adding additional depth of maturity and diversification across the funding platform.  We are encouraged by the level of market interest in our debut Braccan transaction.

“This successful execution gives us the funding tools to be able to continue on our growth lending journey, and allows us to continue offering competitive specialist mortgage products to both the residential and landlord borrower, across multiple different sectors.

“This transaction reflects a significant effort from many of our colleagues and I personally thank them for their continued contributions to the success of the business.”