LendInvest has completed its eighth Mortimer residential mortgage-backed securitisation, securing £300 million against a portfolio of UK prime buy-to-let mortgages.
The Mortimer 2026-1 transaction is backed by £265 million of 1,240 UK prime buy-to-let mortgage loans originated and serviced by LendInvest BTL, alongside a further £35 million of pre-funding. All 1,240 loans were performing at the transaction cut-off date.
The deal attracted strong institutional demand across all three classes of notes. Orders were equivalent to 2.5 times the Class A notes, 3.8 times Class B and 4.4 times Class C.
The Class A notes, rated AAA by Fitch and Morningstar DBRS, were priced at 82 basis points over SONIA, broadly in line with the 81 basis points achieved on the previous Mortimer transaction in 2025.
Despite this similar pricing at Class A level, LendInvest achieved a lower overall funding cost. The weighted average cost of funding fell to 88 basis points from 92 basis points for Mortimer 2025-1.
The transaction is also significant because it is LendInvest’s first securitisation to qualify as a UK Simple, Transparent and Standardised, or STS, securitisation. The framework is designed to make securitisations easier for investors to assess and can, subject to applicable requirements, provide preferential capital treatment for certain investors.
For LendInvest, the STS status could broaden the institutional investor base for its mortgage assets, including potential participation from bank treasury investors.
The latest transaction continues the Mortimer programme, which has provided LendInvest with a repeatable route to institutional capital markets funding since its first securitisation in 2019.
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