The Mortgage Lender has signed a multi-year purchase agreement with TwentyFour Asset Management, backing its launch into the UK intermediary market.
A stock exchange announcement last week confirmed UK Mortgages Limited will invest in profit participating notes issued by a dedicated acquisition company, which will purchase owner-occupied mortgage loans on an ongoing basis from TML.
UKML is a listed closed-ended fund that invests in a diversified portfolio of UK residential mortgages. It was launched in 2015 and is run by TwentyFour. Since its launch, the fund has sought a mortgage origination partner to facilitate a flow of mortgage loans that fit the investment policy.
The initial capital commitment will enable the purchase of £250m of mortgage loan production over a 12-14 month period, with the intention to deploy fresh capital on an ongoing basis.
The expectation is for a portfolio of geographically diversified loans with an average loan-to-value of 75 per cent. TML will be the originator and legal title holder of the mortgages, while also acting as servicer for the mortgage borrowers.
The product suite will go live on 11 July, with The Mortgage Lender accepting broker registrations, decision-in-principle requests and processing applications on its website.