Third securitisation for Foundation Home Loans

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Foundation Home Loan has completed its third securitisation under the Twin Bridges platform.

Called Twin Bridges 2019-1, it is at £329m the largest securitisation of mortgages originated by Foundation Home Loans to date.

The lender said that the securitisation had taken place within a “challenging” wholesale funding market – year-to-date issuance is at less than 20% than it was during the equivalent period in 2018.

Foundation’s securitisation is the first UK RMBS buy-to-let trade this year and only the fifth mortgage securitisation of any type.

The transaction was over-subscribed, attracting the lender’s biggest ever order book of 41 orders totalling £832m, enabling significant price tightening.

All classes of bonds were over-subscribed at least twice and the trade was done with zero new issue premium over the price at which previous Twin Bridges securitisation bonds trade in the secondary market.

Hans Geberbauer, chief executive of Foundation Home Loans, said: “This is a huge strategic success for the business and underlines the strength of our Treasury team at a time when some competitors have been struggling to demonstrate the reliability of their funding approach.

“The transaction demonstrates the confidence investors have in our proposition. We have recently expanded our warehouse facilities to £750m of funding commitments. The proceeds from this transaction will be directly reinvested in funding our ambitious growth plans for new mortgage originations.”

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