Chetwood Bank has successfully completed its second residential mortgage-backed securitisation, Chetwood Funding 2025-1 plc, marking the bank’s first transaction achieving full derecognition of assets from its balance sheet.
The £497 million transaction is backed by a diversified portfolio of UK buy-to-let mortgages originated through Chetwood’s forward-flow partners, all serviced in line with Chetwood’s specialist mortgage criteria.
The deal demonstrates Chetwood’s continued growth in the specialist mortgage market and its capability to access the wholesale funding markets to complement its retail savings franchise.
The c.£57 million Class B to R Notes as well as the Residual Certificates were pre-placed, with Chetwood retaining the £448 million Class A Notes.
The transaction meets UK STS requirements and has been structured to qualify as eligible collateral under the Bank of England’s Sterling Monetary Framework.
Simon Allsop, Chief Financial Officer of Chetwood Bank, said: “This transaction represents an important milestone for Chetwood Bank as we continue to diversify our funding base, enhance capital efficiency and strengthen our presence in the specialist mortgage market.
“The successful placement of the mezzanine and equity tranches demonstrates strong investor confidence in our origination partnerships and risk management framework.”
