LendInvest completes eighth Mortimer securitisation with £300m BTL portfolio

LendInvest has successfully completed its eighth residential mortgage-backed securitisation under its Mortimer programme.

The transaction, Mortimer 2026-1 Plc, is backed by a £265m portfolio of 1,240 UK prime BTL mortgage loans originated and serviced by LendInvest BTL Limited, with an additional £35m of pre-fund.

LendInvest said the transaction attracted strong institutional investor demand across the capital structure, with orders equivalent to 2.5 times Class A, 3.8 times Class B and 4.4 times Class C.

The Class A notes, rated AAA by Fitch and Morningstar DBRS, priced at 82bps over SONIA, broadly in line with the 81bps achieved on Mortimer 2025-1.

However, the transaction’s weighted average cost of funding was 88bps, compared with 92bps for Mortimer 2025-1.

Mortimer 2026-1 is also LendInvest’s first securitisation to qualify as a UK Simple, Transparent and Standardised (STS) securitisation.

This framework was designed to make securitisations easier for investors to understand and assess.

The transaction represents LendInvest’s eighth securitisation under the Mortimer programme, which has provided the company with a repeatable route to institutional capital markets funding since its first transaction in 2019.

All 1,240 loans in the portfolio were performing at the cut-off date.

The portfolio has a weighted average current LTV ratio of 73.23% and weighted average rental cover of 177.25%.

Rod Lockhart, CEO at LendInvest (pictured above), commented: “The successful completion of our eighth Mortimer securitisation demonstrates the strength of LendInvest’s access to institutional capital.

“We saw strong demand across the capital structure and achieved a lower overall cost of funding than last year’s transaction, despite a more challenging market environment.

“This is also our first UK STS securitisation, broadening the potential investor base for our assets and further strengthening the Mortimer programme as an important part of our funding platform.”