Quantum Mortgages, the specialist buy-to-let (BTL) lender, has completed its first public securitisation, two years after its initial launch.
The transaction, Bletchley Park Funding 2024-1, comprised £234m of loans with the senior tranche priced at just 0.87% over SONIA.
Due to engagement with investors, the bonds were oversubscribed with AAA’s enjoying over two-times coverage, with one investor citing the lenders “solid management track record in the sector and quality of its underwriting to professional, sophisticated landlords.”
The deal also represented ongoing confidence in the UK BTL sector, as investor demand for these assets remain strong.
Quantum Mortgages said this was the first public deal, and that it would 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 and 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.”
