Quantum Mortgages has completed its second securitisation just 10 months after its inaugural issuance, highlighting robust demand for buy-to-let mortgage-backed assets and continued investor confidence in the UK rental sector.

The specialist lender, which launched in 2022 to cater to professional landlords, has now securitised more than £500 million in loans through its Bletchley Park Funding programme.

The latest transaction, Bletchley Park Funding 2025-1, comprised £278 million of UK buy-to-let loans and received the tightest pricing of any such deal since Quantum entered the market.

Senior notes were priced at 0.77% over SONIA.

This is the second securitisation completed by Quantum Mortgages in three years since the firm’s inceptionl. HSBC acted as sole arranger, with Lloyds and Citi as joint lead managers. The firm’s funding partner, ABCarval, sponsored the transaction.

The bond was heavily oversubscribed, with participation from a wide range of institutions, including UK and international clearing banks, challenger banks, investment banks, asset managers and fund managers.

According to Quantum, demand was significantly buoyed by the success of last year’s issuance and confidence in the underlying quality of assets.

Jason Neale, founder and chief executive of Quantum Mortgages, said: “We are delighted to complete our second securitisation, especially so soon after our inaugural deal last summer.

 “The huge interest and demand from the investor community confirms our position as an established expert in providing finance for professional landlords and the pricing of the deal reflects the quality and diligent work our team produce every day.”

He added that the strong investor appetite was a positive sign not only for Quantum but for all UK non-bank lenders who rely on the capital markets to fund growth.

“Greater demand allows us all to continue to grow and innovate while reducing our cost of funds to provide better value products for landlords,” he said.