It contains £560 million-worth of BTL business
Specialist buy-to-let lender Keystone Property Finance has completed its largest securitisation to date, totalling £560 million in buy-to-let loans.
The securitisation, named Hops Hill No.4, includes a 15% prefunding and carries loans from its first securitisation, Hops Hill No.1, issued in January 2021, which is set to be called in May 2024.
The issuance saw strong investor demand, with senior notes being 1.5 times oversubscribed and mezzanine notes more than three times oversubscribed. The AAA-rated notes were priced at Sonia +88 basis points, indicating high demand and the quality of the loans.
This transaction marks Keystone’s fourth public securitisation since it relaunched in 2018, and the second instance where it has acted as the servicer.
“Over the past six years, we have gone from strength to strength, going from a new entrant to becoming one of the go-to lenders in the specialist buy-to-let market,” said Elise Coole (pictured), managing director of Keystone Property Finance. “This securitisation marks the next step in that journey.
“We are delighted with how well this has gone and seeing the Hops Hill issuance develop over time with each new securitisation. The fact it has priced so attractively and garnered strong interest among investors is a testament to our underwriting criteria and the teams that work hard every day, alongside our broker partners, all of which are committed to the great outcomes.
“We are always strategically looking forward, and we will continue to evolve our offering and our product set to ensure that they remain relevant to our broker partners and their clients. This deal allows us to continue that good work.”
Marko Feiertag of TwentyFour Asset Management said it was delighted to work with the Keystone team and thrilled how well established the Hops Hill funding platform has become, attracting new investors on their latest transaction.
“We have been working together with Keystone as sponsor of the Hops Hill platform for more than five years,” Feiertag added. “The financial markets were very challenging the last couple of years, and we have been impressed throughout the journey with the strong management team at Keystone reacting quickly to challenges and being able to implement new innovative products in a short time with their robust inhouse IT platform.
“Keystone’s expertise extends beyond the management team to the underwriting, risk, servicing and IT department which results in the strong loan performance seen over the last five years.”
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