LendInvest has completed its eighth Mortimer residential mortgage-backed securitisation, securing £300 million of funding against a portfolio of UK prime buy-to-let loans.
Mortimer 2026-1 Plc is backed by £265 million of mortgages originated and serviced by LendInvest BTL Limited, alongside a further £35 million of pre-funding.
The underlying portfolio comprises 1,240 buy-to-let loans, all of which were performing at the transaction’s cut-off date. It has a weighted average current loan-to-value ratio of 73.23% and weighted average rental cover of 177.25%.
LendInvest said demand from institutional investors resulted in orders equivalent to 2.5 times the Class A notes, 3.8 times Class B and 4.4 times Class C.
FUNDING COST FALLS
The Class A notes, rated AAA by Fitch and Morningstar DBRS, were priced at 82bps over SONIA, compared with 81bps for Mortimer 2025-1.
Across the transaction as a whole, however, the weighted average cost of funding fell to 88bps from 92bps on last year’s securitisation.
Mortimer 2026-1 is also the first LendInvest securitisation to qualify under the UK’s Simple, Transparent and Standardised securitisation framework.
The STS designation is intended to make qualifying securitisations easier for investors to assess and can, subject to applicable requirements, provide preferential capital treatment for some investors. LendInvest said the status could widen the potential institutional investor base for its mortgage assets, including bank treasury investors.
The latest deal continues a securitisation programme launched in 2019 and gives LendInvest another means of recycling capital into new mortgage lending alongside its institutional funding partnerships and bank facilities.
Rod Lockhart (pictured), chief executive officer of LendInvest, said: “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.”
He added: “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.”
LendInvest provides property finance across buy-to-let, bridging and development lending. It has advanced more than £9 billion since inception and reported funds under management of £5.48 billion and platform assets under management of £3.82 billion at 31 March 2026.
