LendInvest completes eighth Mortimer securitisation with £300m portfolio of UK prime buy-to-let mortgages
LendInvest plc (LSE: LINV) (“LendInvest” or the “Company”), one of the UK’s leading alternative property finance and asset management platforms, today announces the successful completion of its eighth Residential Mortgage-Backed Securitisation (“RMBS”) under its Mortimer programme.
The transaction, Mortimer 2026-1 Plc, is backed by a £265m portfolio of 1,240 UK prime buy-to-let mortgage loans originated and serviced by LendInvest BTL Limited, with an additional £35m of pre-fund.
The transaction attracted strong institutional investor demand across the capital structure, with orders equivalent to 2.5 times Class A, 3.8 times Class B and 4.4 times Class C. The Class A notes, rated AAA by Fitch and Morningstar DBRS, priced at 82bps over SONIA, broadly in line with the 81bps achieved on Mortimer 2025-1. However, the transaction’s weighted average cost of funding was 88bps, compared with 92bps for Mortimer 2025-1.
Mortimer 2026-1 is also LendInvest’s first securitisation to qualify as a UK Simple, Transparent and Standardised (“STS”) securitisation. The STS framework is designed to make securitisations easier for investors to understand and assess and, subject to applicable requirements, can provide preferential capital treatment for certain investors. The designation broadens the potential institutional investor base for LendInvest’s mortgage assets, including bank treasury investors.
The transaction represents LendInvest’s eighth securitisation under the Mortimer programme, which has provided the Company with a repeatable route to institutional capital markets funding since its first transaction in 2019.
All 1,240 loans in the portfolio were performing at the cut-off date. The portfolio has a weighted average current loan-to-value ratio of 73.23% and weighted average rental cover of 177.25%.
A Strong Result in a Challenging Market
The successful transaction demonstrates continued institutional demand for LendInvest-originated mortgage assets and the Company’s ability to access the debt capital markets repeatedly.
Strong demand and tight pricing across the capital structure, together with the STS designation and participation from new and existing institutional investors, demonstrates the breadth of the investor base for LendInvest’s mortgage assets.
The transaction provides another route for LendInvest to recycle capital and support future mortgage origination, alongside its broader range of institutional funding partnerships, bank facilities and capital markets funding.
Rod Lockhart, chief executive officer of LendInvest, commented: “The successful completion of our eighth Mortimer securitisation demonstrates the strength of LendInvest’s access to institutional capital. 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. It also demonstrates the strength and depth of the investor relationships we have built through the Mortimer programme.”