Kensington Mortgages, part of The Northview Group, has raised further funding in the capital markets through a new securitisation announced on Tuesday (27/09/2016). The deal, known as Finsbury Square 2016-2, is the Group's second from its Finsbury Square shelf and is backed by £346m of mortgages (including 15% Buy to Let) originated by Kensington.
The Northview Group successfully placed the first Finsbury Square transaction in April this year, backed by £350m of very similar collateral. Amidst difficult market conditions at the time, the class A priced at 3m£L + 150bps. The new deal is expected to generate significant investor appetite, particularly given the quality of the assets and the limited new issue supply in the UK RMBS market in recent months, and is expected to price well inside the first deal.
This brings the total number of securitisations backed by Northview Group collateral since the acquisition of Kensington in January 2015 to seven and is the third one this year. The Northview Group has securitised assets in excess of £4bn since the beginning of 2015 making it one of the most active issuers in the UK market.