Paragon, which is set to issue its third securitisation in the past 12 months, issued a statement confirming it is meeting with investors and will update the market on pricing in due course.
A ratings note from Fitch revealed the transaction will comprise UK prime buy-to-let loans originated by Paragon Mortgages and buy-to-let mortgages bought buy a Paragon subsidiary company, Idem Capital Securities.
Meanwhile Charter Court Financial Services, the holding company that sits behind Precise Mortgages, has confirmed its second securitisation, a £235m deal made up of residential and buy-to-let loans. Credit Suisse has been appointed as arranger and Deutsche Bank and Credit Suisse will act as joint lead managers.
Simon Allsop, head of securitisation of Precise Mortgages, said: “There is a significant finance need in the market and many consumers remain underserved. This second securitisation will further increase our lending ability and meet the ambitions of creditworthy homeowners and buy-to-let borrowers.”
Adviser view
David Whittaker, managing director of Sevenoaks-based Mortgages for Business, said: “Two securitisations in the market at the same time - we haven’t seen this since the credit crunch. The quantum of debt and the pricing improvement since their respective last forays into the market will be very indicative of the ever improving appetite of institutions for mortgage backed securities.
“Paragon has clearly changed gear which landlords will welcome and renewed funding for Precise will allow them to broaden the depth and range of the products that they offer in both residential and buy-to-let markets. And with both lenders wholly committed to intermediary distribution this is good news for mortgage brokers.”
