Precise Mortgages Completes Latest Securitisation

29 July 2014

Charter Court Financial Services Limited (CCFS), under its brand name Precise Mortgages, has completed its second securitisation (Precise Mortgage Funding 2014-1 PLC). The Fitch and S&P rated deal was successfully placed with a number of key institutional investors and was more than two times oversubscribed on the senior notes. The transaction follows on from CCFS’ inaugural securitisation (PMF No.1) in late 2013 which remains 100% performing.

The details of the latest securitisation, which closed on 22nd July, are as follows:

• CCFS were able to increase their overall deal size to £235MM, bringing the total placed in capital markets since December 2013 to £400MM.
• Strong demand enabled CCFS to price their AAA rated £200MM senior note at just 80 basis points over three month Libor; an improvement of 35 basis points relative to their first deal.
• The improvement was even more significant across all notes placed, with overall costs of funds at close coming in 55 basis points tighter than PMF no.1 at 88 basis points over three month Libor.

The new securitisation will support Precise Mortgages’ ongoing commitment to extend more loans to creditworthy borrowers in both the home owner and Buy to Let spaces.

Simon Allsop, Head of Securitisation of Precise Mortgages, commented: “Our second securitisation was heavily oversubscribed, drawing in a range of investors from Europe and beyond, and highlighting that demand for high quality mortgage loans remains incredibly strong. Diversifying our funding base in this way supports Precise Mortgages’ on-going new lending programme. To date we have lent over half a billion pounds in the home owner and BTL spaces, yet there is clearly still a significant need which our successful securitisation will help us address.”