New BABS2 securitisation replaces 2021 structure, supporting funding flexibility and ongoing loan growth
Specialist property lender Together Financial Services has closed a new securitisation facility backed by sub-performing residential and commercial loans.
The new structure, Brooks Asset Backed Securitisation 2 Limited (BABS2), replaces the original BABS facility launched in 2021. It comprises a £121.9 million portfolio of loans previously held within the firm’s Senior Borrower Group 1. Together will continue to service and manage the loans, maintaining borrower relationships under its existing model.
The lender said BABS2 fits within its broader funding strategy, which includes 13 public and seven private mortgage-backed securitisations, senior secured notes and a revolving credit facility.
“We are delighted to announce the completion of BABS2, which provides additional flexibility to our funding platform,” said Gary Beckett, group managing director and chief treasury officer at Together.
The transaction follows a period of strong performance for Together. In the December 2024 quarter, the lender reported net loan book growth to £7.7 billion, up 13.2% from £6.8 billion in the previous quarter. Average monthly lending rose 21.6% year-on-year to £283.2 million.
The group has also taken steps to bolster its funding base. In November, its LABS bridging facility was upsized to £1 billion. Then in January 2025, Together restructured its £1.25 billion CABS2 warehouse into two revolving facilities — £1.2 billion KABS and £387 million WABS — to support its residential mortgage-backed securities (RMBS) programmes. Last month, the lender issued its first RMBS deal of the year, raising £276.8 million through its TABS 13 transaction.
“Since the start of the calendar year, we have successfully raised or refinanced £2.5 billion across five transactions, as we continue to broaden our funding and raise additional liquidity to support our growth ambitions,” Beckett said.
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