Northview Group secures new £600m securitisation deal

Due to good demand from senior and junior debt investors, the transaction was successfully upsized during the process from an initial size of £420m. 

The loans in the securitisation pool reflect the quality of lending by Kensington Mortgages.

The average LTV at the time of the transaction was 73%, with a weighted average interest rate of 3.8%. 

The pool also included 20% BTL loans. 

Less than 1% of the borrowers in the portfolio securitised were more than one month in arrears at the time of closing. 

There were no self-certified loans in the portfolio and only 30% of the mortgages were secured against properties in London and the South East. 

NVG has now securitised £4bn of mortgages since 2015 and the deal is the second-largest transaction secured by the recent originations of the Northview Group.

A total of 16 unique investors were involved in the transaction, with a balanced participation between funds and banks.

European investors – excluding the UK – accounted for 27% of the demand, a higher percentage than usual. 

“This transaction is further evidence of Northview’s strong track record in accessing the UK securitisation market, with the pricing and the large size a reflection of continued investor confidence in our securities – which reflects the high quality of the new mortgages written under our Kensington brand name,” said Alex Maddox, capital markets and product development director at NVG.

“High-quality investors want access to the high-quality mortgage customers being sourced through Kensington’s unsurpassed underwriting.

“With the Bank of England bringing its crisis-era Term Funding Scheme to an end, an increasing number of lenders have started to access the securitisation markets again as an alternative source of funding.”