Quantum Mortgages, the specialist buy to let lender, has completed its first ever public securitisation, just 2 years after launching.
The transaction, Bletchley Park Funding 2024-1, comprised £234 Million of UK loans with the senior tranche priced at just 0.87% over SONIA, which represents remarkably tight pricing for a specialist first-time issuer.
Due to excellent engagement with investors, the bonds were oversubscribed with AAA’s enjoying over 2x coverage with one investor citing the lenders ‘solid management track record in the sector and quality of its underwriting to professional, sophisticated landlords’ as key characteristics.
The deal also represents ongoing confidence in the UK buy to let sector, as investor demand for these assets remain strong.
Quantum Mortgages say this is just the first public deal and it will go on to become a programmatic and sustained issuer in the capital markets.
Jason Neale, Managing Director at Quantum Mortgages said:
“We are delighted to have completed our debut securitisation, especially considering the difficult conditions for the buy to let market since we launched as a lender. This successful transaction is testament to the exceptional quality of assets we have generated and the hard work of the entire Quantum Mortgages team who deliver our unique proposition to intermediaries and their landlord clients.
Gautam Pandey, Capital Markets & Funding Director added:
“Our inaugural securitisation garnered widespread interest and strong support from a diverse range of investors. The overwhelming response, without the need for a new issuer premium, is a testament to the confidence the market has in our vision and strategy. This achievement not only marks a significant milestone for us but boosts our plans to launch a range of innovative products in the market. Furthermore, it positions us strongly for future funding opportunities, setting a solid foundation for our ongoing growth and success.”
