The AIM-traded firm said the deal, Mortimer 2025-1 Plc, comprised 92.4% buy-to-let and 7.6% owner-occupied mortgages originated by the company’s mortgages division

LendInvest announced the completion of its seventh residential mortgage-backed securitisation on Tuesday, raising £310.6 million through an oversubscribed transaction backed by UK prime buy-to-let and owner-occupied loans, marking another milestone in its Mortimer funding programme.

The AIM-traded firm said the deal, Mortimer 2025-1 Plc, comprised 92.4% buy-to-let and 7.6% owner-occupied mortgages originated by the company’s mortgages division.

All 1,208 loans were performing at the cut-off date, reflecting what the company called its “disciplined underwriting approach”.

The senior tranche, representing 89.4% of the loan pool, was rated AAA by Fitch and DBRS and priced at a tight spread of 81 basis points over SONIA – LendInvest’s second-best securitisation pricing to date.

I am delighted to announce the completion of our seventh successful securitisation, said chief executive Rod Lockhart.

Achieving a highly competitive spread of 81 basis points over SONIA for an upsized deal in the current market is a powerful testament to investors’ deep trust in the quality of the assets we originate and our robust, tech-enabled platform, he said.

This transaction is particularly notable as it was our first trade with a pre-fund structure, accelerating our growth strategy into the coming year and further unlocking capacity to write new business across our BTL and owner-occupied divisions, he said.

Proceeds of around £310 million would primarily be used to repay £270 million of existing borrowings, providing additional liquidity and capacity for new lending.

The deal also generated about £5.5 million in unrestricted cash from reserve releases and excess spread, which could be reinvested or used to strengthen the group’s balance sheet.

Lloyds Bank acted as sole arranger, with Société Générale, BNP Paribas and HSBC as joint lead managers.

LendInvest said its RMBS programme continued to attract strong institutional demand, offering secured exposure to UK property assets while adhering to strict regulatory and risk retention standards.

By retaining 5% of each securitisation, the company said it maintained alignment with investors and underlined confidence in its loan book quality.