LendInvest completes seventh residential mortgage-backed securitisation
By Josh White
Date: Tuesday 28 Oct 2025
(Sharecast News) - LendInvest announced the completion of its seventh residential mortgage-backed securitisation on Tuesday, raising £310.6m through an oversubscribed transaction backed by UK prime buy-to-let and owner-occupied loans, marking another milestone in its Mortimer funding programme.
The AIM-traded firm said the deal, Mortimer 2025-1 Plc, comprised 92.4% buy-to-let and 7.6% owner-occupied mortgages originated by the company's mortgages division.
All 1,208 loans were performing at the cut-off date, reflecting what the company called its "disciplined underwriting approach".
The senior tranche, representing 89.4% of the loan pool, was rated AAA by Fitch and DBRS and priced at a tight spread of 81 basis points over SONIA - LendInvest's second-best securitisation pricing to date.
"I am delighted to announce the completion of our seventh successful securitisation," said chief executive Rod Lockhart.
"Achieving a highly competitive spread of 81 basis points over SONIA for an upsized deal in the current market is a powerful testament to investors' deep trust in the quality of the assets we originate and our robust, tech-enabled platform.
"This transaction is particularly notable as it was our first trade with a pre-fund structure, accelerating our growth strategy into the coming year and further unlocking capacity to write new business across our BTL and owner-occupied divisions."
Proceeds of around £310m would primarily be used to repay £270m of existing borrowings, providing additional liquidity and capacity for new lending.
The deal also generated about £5.5m in unrestricted cash from reserve releases and excess spread, which could be reinvested or used to strengthen the group's balance sheet.
Lloyds Bank acted as sole arranger, with Société Générale, BNP Paribas and HSBC as joint lead managers.
LendInvest said its RMBS programme continued to attract strong institutional demand, offering secured exposure to UK property assets while adhering to strict regulatory and risk retention standards.
By retaining 5% of each securitisation, the company said it maintained alignment with investors and underlined confidence in its loan book quality.
Alongside the transaction, the company launched a new five-year retail-eligible bond with an 8.25% fixed coupon, listed on the London Stock Exchange's Order Book for Retail Bonds.
It was LendInvest's fifth such bond under its current EMTN programme, and formed part of its strategy to diversify funding sources and expand its investor base.
"Successfully launching both our seventh securitisation and a new retail bond in short order demonstrates the strength of our funding engine and the trust institutional investors place in our platform," commented chief capital officer and mortgages managing director Hugo Davies.
"Following these successful funding initiatives, the Mortgages Division is positioned to deliver origination volumes that are anticipated to be significantly ahead of the previous year."
Following the transaction, LendInvest's funds under management rose above £5.3bn, with assets under management reaching £3.45bn.
The company said its current loan origination run-rate was now 20% to 25% higher than a year ago, underscoring momentum across its property finance platform.
At 1340 GMT, shares in Lendinvest were up 1.04% at 37.89p.
Reporting by Josh White for Sharecast.com.
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