It also announces new and repriced residential and BTL products
Foundation Home Loans has completed its first residential mortgage-backed securitisation (RMBS), backed by a portfolio of buy-to-let and owner-occupied mortgages.
The securitisation, named Braccan 2024-1, was priced on September 4, with the lender selling £550 million worth of mortgage loans.
The deal marks a new addition to Foundation's securitisation programmes, alongside its existing Twin Bridges (buy-to-let) and Brants Bridge (owner-occupied) platforms.
“We are very pleased to announce the completion of this £550 million securitisation, the first in which we have both mixed buy-to-let and owner-occupation mortgage loans, and the first sterling RMBS deal to have priced after the summer,” said Pete Ball (pictured), chief executive of Foundation Home Loans. “We have achieved excellent pricing for this transaction, adding additional depth of maturity and diversification across the funding platform.”
According to Steve Vance, director of capital markets at Foundation Home Loans, the transaction also received strong interest from investors.
“Class As achieved a price of 84 basis points over SONIA, with the final book size ending at £925 million from 26 unique investors,” he said. “The new deal reinforced our strong financial position, providing additional capacity to grow lending activities over the next 12 months and beyond.”
Ball added that the success of the Braccan 2024-1 transaction would enable the lender to continue offering competitive specialist mortgage products to both residential and landlord borrowers.
New and repriced residential professional and buy-to-let products
Foundation has also announced product updates with rate reductions in its Residential Professionals range and new products in its buy-to-let range, effective from today, September 12.
See LinkedIn post here.
In its Residential Professionals range, the lender has launched a new F1 five-year fixed product with up to 65% loan-to-value (LTV). This product includes a £995 fee, £350 cashback, and an interest rate of 5.74%. In addition, the F1 five-year fixed options at 75% and 85% LTV have been adjusted, now offering rates starting from 5.84%, with the same £995 fee and £350 cashback.
The Professionals products are now available on all repayment types, including interest-only options, broadening their appeal to a wider range of borrowers.
In its buy-to-let range, Foundation has introduced a new F1 Green five-year fixed product, aimed at environmentally conscious investors. This product offers a 5.54% interest rate up to 75% LTV, with a 1.25% fee, one free standard valuation, and no application fee.
Also, the F2 Large Portfolio five-year fixed product has seen a rate reduction of 0.20%, bringing it to 6.29% up to 70% LTV. It also comes with a 1.25% fee, one free standard valuation, and no application fee.
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