Kensington Mortgages has placed a £452m package of mortgage-backed securities in the wholesale financial markets.

The specialist lender says its Finsbury Square 2021-2 bond was oversubscribed, with senior and mezzanine tranches sold to 26 different accounts. Senior debt was priced at 80 basis points over the sterling overnight indexed average.

The deal will raise £463.7 million for the firm, which it will use to support complex lending and underserved borrowers.

Kensington sells mortgages to the self-employed, those with multiple incomes and the over 55s.

The bond was announced on 3 November and was issued in both RegS and 144a format, to attract new US fund investors.

This is the lender’s third securitisation of the year and takes the total funds it has raised to £13.4bn in 24 transactions since 2015.

Kensington Mortgages capital markets & digital director Alex Maddox says: “We continue to build on the strong position we hold in the UK residential mortgage-backed securities market and are delighted to issue our third and final securitisation of the year.

“This follows Kensington’s issue of the first social bond in the UK and RMBS markets [in February] and first green bond within the UK asset-backed securities market from a specialist lender earlier this year [in June].

“Our business purpose aim is always to help underserved borrowers. We look beneath the surface and consider complex and multiple income sources and lend to those who do not pass the automated credit process that most high street banks rely on and otherwise struggle to own a home.

“The business is seeing strong growth accompanied by stable returns, and this is reflected in the strong appetite amongst investors for our securitisations.”