OneSavings Bank plc acquired Charter Court Financial Services Group plc and its subsidiary companies on 4th October 2019. The information displayed on this website is correct at that date, and is no longer being updated.
Delivering on IPO promises
Charter Court is currently delivering or exceeding all its targets set at the time of the Group’s IPO. The Group entered the FTSE 250 in March 2018. Robust demand for the Group’s specialist lending proposition led to continued growth of mortgage balances to £6.7 billion whilst prudent risk management allowed Charter Court to maintain a sector-leading cost of risk. The Group took advantage of favourable market conditions to execute a number of securitisation transactions, with issuance totalling £906.1 million for the year.
Successful IPO and listing as cumulative originations exceed £8.1 billion
Charter Court successfully completed a premium listing on the Main Market of the London Stock Exchange on 4 October 2017. The success of the Initial Public Offering (“IPO”) was a clear endorsement of Charter Court’s business, track record, strategy and prospects. It also marked the next exciting stage of the Group’s development. Just two months after securing third place in The Sunday Times “100 Best Companies to Work For” rankings in March 2017, Charter Court was recognised as one of the UK’s most inspiring companies in London Stock Exchange Group’s 1,000 “Companies to Inspire Britain 2017” report.
Accelerating growth and recognition
Charter Court achieved one of the highest growth rates in total mortgage originations (56%) among its specialist bank peer group increasing total net lending by 96% to £3.8 billion. Continued pursuit of a diverse funding strategy led to a further increase in retail deposits to over £3.4 billion. Charter Court’s reputation for mortgage servicing in the UK was reinforced by the Fitch Ratings upgrade of the Group’s primary servicer operation rating to RPS2. Charter Court achieved tenth place in The Sunday Times 100 Best Companies to Work For rankings.
Banking licence awarded and Charter Savings Bank launched
Charter Court’s funding capability and sustainability of the platform received a significant boost after the Prudential Regulation Authority (“PRA”) and Financial Conduct Authority (“FCA”) granted the Group a banking licence, paving the way for the launch of Charter Savings Bank (“CSB”). Three further securitisation transactions brought total issuance to £1.2 billion. Charter Court took advantage of favourable market conditions to sell its residual certificates in one of those securitisation vehicles, delivering a pre-tax gain of £10.0 million. In April 2015, Charter Court’s Fitch primary servicing rating was upgraded to RPS2-, while it also maintained its special servicer rating of RSS2-. In the first year of operation, CSB’s retail savings deposits surpassed £1 billion. Supported by its enlarged funding base, Charter Court achieved cumulative mortgage originations of over £2 billion.
Charter Court’s total public securitisation issuance reached £600 million
With its second and third securitisations closed, Charter Court’s total public issuance reached £600 million. During the year, the Group commenced its application for a UK banking licence and opened a second office in Wolverhampton, paving the way for further expansion.
Second charge loans launched
Charter Court issued its first residential mortgage-backed security (“RMBS”) in December 2013. The success of the first transaction paved the way for seven subsequent securitisations by the end of 2017, establishing Charter Court as one of the leading securitising entities in the UK. This provided the Group with a strong funding base, enabling further growth in lending. Subsequently, Charter Court launched the first public residential mortgage-backed security from a new post credit crisis issuer and started to offer second charge lending. Charter Court’s capability in mortgage servicing was recognised when Fitch Ratings granted the Group an upgrade for special servicing to RSS2-, and its first rating for primary servicing of RPS3+.
Charter Court increased its mortgage lending. Cumulative credit analysis passed £6 billion whilst cumulative assets under management passed £1 billion. Fitch Ratings also granted the Group its first rating for special servicing at RSS3.
Having identified a further opportunity in the market, Charter Court extended its lending footprint by offering bridging lending.
Charter Court was the first non-bank to achieve FSA authorisation as mortgage lender post-crisis. The Group began lending in 2010 and the year also marked the completion of Charter Court’s first buy to let loan. On the servicing side, in May 2010, Charter Court boarded its first special servicing portfolio for a major investment bank.
First post-crisis authorised mortgage administrator
Charter Court became the first post-crisis business to obtain authorisation from the Financial Services Authority (“FSA”) to conduct regulated mortgage administration activities, and obtained a Consumer Credit Act (“CCA”) licence from the Office of Fair Trading for debt administration. This allowed Charter Court to start managing loans on behalf of other institutions. During this period, mortgage servicing systems were built, and loans managed increased steadily, while cumulative credit analysis grew to over £4.1 billion. This bedrock of experience gave Charter Court the operating knowledge and infrastructure of a larger mortgage lender.
Launched by current management team with investment from Elliott
Founded by many of its current management team, Charter Court embarked on an exciting journey to become one of the UK’s leading specialist mortgage banks . In the depths of the financial crisis, with the UK economy and its mortgage market shrouded in uncertainty, the initial focus of the team was mortgage credit analysis and collections. Charter Court was soon employed by some of the world’s most sophisticated financial institutions - including hedge funds, private equity firms, investment banks, and building societies - to provide due diligence services on loan books and an in-depth understanding of UK mortgage assets.