The deal, which is a combination of 54.32 per cent prime buy-to-let and 45.68 per cent prime self-cert mortgages, is mostly AAA-rated products but also contains AA, A and BBB-rated mortgage loans.
The book is currently with the ratings agencies and will be finalised in the next few days, with a statement to the market due on 14 November.
However, the market will be watching the securitisation closely to gauge investor confidence in mortgage-backed securities after the issues originating in US, with a number of other lenders reportedly lining up deals.
Martin Reynolds, commercial director at edeus, commented: “It’s good that someone is putting a securitisation out there and all eyes in the market will be on how it fares. I can’t see any reason why it won’t go through though and I’m sure we’ll see a few more before the end of the year.”
A spokesperson for Lehman Brothers confirmed that the securitisation was part of its ongoing programme and that the composition of buy-to-let and self-cert products was just the next in line to be processed, rather than a special selection.
The spokesperson also admitted that there would undoubtedly be other securitisations by the institution in the pipeline in the near future.
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