Kensington Mortgages has agreed a securitisation valued at £472m, which the specialist lender says is “a critical part of the funding cycle” allowing it to target underserved loan markets.

The lender said the oversubscribed deal attracted 28 investors across four loan tranches at a total cost of 66 basis points on the UK Residential Mortgage-Backed Security market.

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

It says its history of lending to the underserved has allowed the deal to be “the first labelled social bond from a specialist lender,” accredited by corporate governance body the Institutional Shareholder Services Group.

Kensington has issued over £12bn bonds in the RMBS market since 2015, which, it says, is the highest amount raised by any specialist lender.

The firm says: “Refinancing the UK owner-occupied home loans originated by Kensington through the issuance of RMBS is a critical part of the funding cycle that enables Kensington to cost-effectively reinvest and help underserved individuals obtain access to banking services and socio-economic advancement by owning a real estate asset which serves as the main residence.”

Kensington Mortgages capital markets & digital director Alex Maddox adds: “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.”