LendInvest raises £300M in eighth Mortimer buy-to-let securitisation
What's the deal? LendInvest has completed its eighth Mortimer residential mortgage-backed securitisation, raising £300 million against UK buy-to-let mortgages. The vehicle, Mortimer 2026-1 PlcDealroom has a profile for this one. Try Dealroom →, is backed by £265 million of 1,240 prime buy-to-let loans plus £35 million of pre-funding.
The details: All loans were performing at the cut-off date, with a weighted average current loan-to-value ratio of 73.23% and rental cover of 177.25%. The Class A notes earned AAA ratings from FitchDealroom has a profile for this one. Try Dealroom → and Morningstar DBRSDealroom has a profile for this one. Try Dealroom →.
Why now? The deal is LendInvest's first securitisation to qualify under the UK Simple, Transparent and Standardised (STS) framework. That status can make the notes eligible for preferential capital treatment for certain institutional investors, widening the buyer base.
By the numbers: The weighted average cost of funding came in at 88 basis points over SONIA, down from 92 basis points on Mortimer 2025-1. Investor orders reached 2.5 times the Class A notes offered, 3.8 times Class B, and 4.4 times Class C.
What they said: "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," said Rod Lockhart, chief executive officer of LendInvest. He added that STS status is "broadening the potential investor base for our assets."
The signal: LendInvest launched the Mortimer programme in 2019, and this round ranks among the larger deals in its class. Tighter funding costs and heavy oversubscription in a difficult market point to steady institutional appetite for UK buy-to-let credit.
Read more: bridgingloandirectory.co.uk
Image credit: Images George Rex
