Precise Mortgages Issues Second Securitisation

01 July 2014

Charter Court Financial Services (CCFS), under its brand name Precise Mortgages, is launching its second public RMBS issuance (Precise Mortgage Funding 2014-1 PLC). Credit Suisse has been appointed as Arranger and Deutsche Bank and Credit Suisse will act as joint lead managers. The deal follows on from CCFS’s successful inaugural 2013 securitisation (PMF No.1). PMF No.1 remains 100% performing to date, with none of the transaction’s 1,257 loans in arrears.

The Fitch and S&P rated transaction has a provisional size of £235 million. The deal, to be marketed in July, will target a broad investor base and is expected to close at the end of July.

  • All loans in the transaction have been originated by Precise Mortgages in the last 12 months
  • All loans have been subject to a combination of automated and manual underwriting
  • All loans have been credit scored using a suite of Experian scorecards
  • All home owner loans are income verified and affordability has been stressed to a minimum of the higher of the current or reversion rate plus at least 2%, and currently 2.78%
  • Buy to let loans have a minimum interest coverage ratio of 125% with the average being 158%
  • No loans are currently in arrears or have ever been in arrears since origination

CCFS, acting under its brand name Exact Mortgage Experts, shall retain servicing of the portfolio. Exact is a premium Fitch rated UK third-party mortgage administrator with Fitch ratings of RSS2- for its Special Servicing and RPS3+ for Primary Servicing.

Simon Allsop Head of Securitisation of Precise Mortgages commented: “We have already seen, from the first securitisation, that diversification of our funding base has allowed us to extend more loans to credit worthy individuals. To date we have lent over £500 million in the home owner and BTL spaces, yet there is undoubtedly still a significant need in the market and many consumers remain underserved. This is why we are undertaking a second securitisation, to further increase our lending ability and meet the ambitions of credit worthy homeowners and buy to let borrowers.”

For further information you can download the deal Presale reports from Fitch Ratings and S&P’s websites.