Securitisation exclusively involves first charge residential mortgages
Non-bank lender Together Financial Services has announced the successful pricing of its £378 million residential mortgage backed securitisation (RMBS) – its second for the year.
The issuance, named Together Asset Backed Securitisation 2024 – 1ST1 PLC (TABS11), exclusively involves first charge residential mortgages.
The RMBS features a 1.08% weighted average cost of placed notes with a 94.9% advance rate. Furthermore, it is expected that 88.5% of the issued notes will receive an AAA(sf) rating from both S&P and Fitch.
TABS11 is supported by a portfolio of first charge owner-occupied and buy-to-let loans secured against properties across England, Scotland, and Wales. The new facility also refinances assets from the Fairway Asset Backed Securitisation 1 Limited (FABS) launched in December 2022.
Read more: Together announces first development securitisation
It joins Together’s extensive suite of financial instruments, including seven public residential and four commercial real estate mortgage-backed securities, six private securitisation facilities, senior secured notes, and a banking syndicate facility (RCF).
BNP Paribas and Wells Fargo served as co-arrangers and joint lead managers for the transaction, with additional support from Santander as joint lead manager.
“We are delighted to announce the successful pricing of our second RMBS this year, which will help us to support more residential owner occupier and buy-to-let customers in realising their ambitions,” said Mike McTighe (pictured), chairman of Together.
Gary Beckett, group managing director and chief treasury officer at Together, commented: “Since the start of our financial year in July, we have now raised or refinanced over £3.2 billion across eight transactions as we continue to add depth of funding and maturity to support our lending ambitions. This highlights the strength of our business model, quality of our loan book and strong ongoing support from our investors.”
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