Specialist buy-to-let lender, Keystone Property Finance, has successfully completed its third securitisation. The securitisation, ‘Hops Hill No.3 plc’, comprises £385m worth of buy-to-let loans originated by Keystone.
The deal forms part of a forward-flow agreement with a listed investment firm managed by TwentyFour Asset Management, indicating a strong investor interest in Keystone’s proposition. The high demand for Hops Hill No.3 was evident, with AAA notes achieving a price of Sonia +115 basis points, underlining the quality of Keystone’s underwriting.
Unique to recent securitisations in the buy-to-let sector, Hops Hill No.3 included an element of pre-funding. This means a portion of the issue incorporates loans currently in the pipeline, signalling an innovative approach from the lender.
Keystone has previously completed two public securitisations since its relaunch in 2018, making this latest deal a major landmark in the company’s development.
Elise Coole (pictured), managing director of Keystone Property Finance, welcomed the successful securitisation. “Keystone has firmly established itself as one of the go-to lenders in the specialist buy-to-let market over the past four years – and this securitisation is the next milestone in our ongoing evolution,” she said.
She hailed the success as a “major vote of confidence” in Keystone’s approach to providing a top-tier proposition to brokers and landlords, whilst maintaining responsible lending practices.
She concluded: “What we have now is added firepower to continue that good work and to give to brokers and landlords more of what they want and need at competitive prices.”
