The issue, which has been well received within the bond market, has been valued at £250 million with the majority of the deal being AAA rated, reflecting the quality of the mortgage assets. Tim Cooley, Chief Financial Officer at Mortgages plc, said: “We were extremely pleased with the deal from start to finish. As one of the established repeat issuers in the UK non-conforming mortgage sector it was especially pleasing to see the number and diversity of investors introduced by Lehman and Dresdner across Europe – at all levels from AAA to A.”
The success of this securitisation deal and other recent deals in the sector is testament to the strength of the UK nonconforming mortgage market and demonstrates very clearly that investors see value compared to other bond issues. Mortgages plc anticipates further successful securitisation issues in the future.
Mortgages plc’s previous securitisation deal was also for £250 million, issued in December 2002. The company has securitised well over £1 billion of mortgage assets to date.
Peter Beaumont, Sales & Marketing Director of Mortgages plc added: “There has been some speculation about the strength of the securitisation market in the UK and this issue should quash any concern about the potential demand for securitised non-conforming mortgage assets. Securitisation is a key component of our mortgage lending activities and I’m pleased to say its in good health!”
