ColCap Financial and digital mortgage lender Molo have completed their second securitisation under the Molossus programme, raising £300 million through Molossus BTL 2025-1.
The transaction follows the success of the inaugural £300 million Molossus BTL 2024-1 deal in May last year and comprises £259 million of prime UK buy-to-let mortgage assets in England and Wales, together with £41 million of pre-funding.
The securitisation attracted strong investor demand, which both firms said demonstrated market confidence in the quality of the loan book and in the Molossus programme. The proceeds will be used to support further growth in lending volumes.
Class A to F notes received ratings from Fitch Ratings and S&P Global Ratings, with the AAA tranche pricing at 0.83% over SONIA, reflecting continued appetite for high-quality UK mortgage-backed securities. It follows Fitch’s recent upgrade of the Molossus BTL 2024-1 PLC class B to E and X notes and the removal of all ratings from Under Criteria Observation.
ColCap Financial UK Limited will retain a 5% material net economic interest in the transaction, acting as risk retention holder.
Macquarie Bank and Standard Chartered Bank acted as co-arrangers, while Macquarie Bank, Standard Chartered Bank, Lloyds Bank and MUFG served as joint lead managers.
ColCap Financial’s UK treasurer, Paolo Tanca, said: “This second securitisation reflects the disciplined management and robust performance of our mortgage portfolio.
“The strong investor participation and attractive pricing highlight the market’s confidence in our strategy.”
Matt Kimber, CEO of ColCap Financial UK and Molo, added: “This transaction is the result of consistent growth in the business across the last 12 months, during which we have attracted new warehouse partners, established a strategic lending partnership with a bank, and achieved record Molo originations.
“Our second securitisation delivers on our promise to become a programmatic RMBS issuer and sets us up for further growth in 2026.”
