Together Financial Services has priced its inaugural second-charge only owner-occupied and buy to let (BTL) mortgage-backed securitisation (RMBS) at £349m.

Together Asset-Backed Securitisation (TABS) 2NDI is the sixth issuance of its TABS programme since 2017 and the eighth MBS facility overall. 

It has been priced at a weighted average cost of 1.96% with a 91.6% advance rate. 

Almost three quarters (73.5%) of the issued notes will be received a AAA-rating from S&P, DBRS and KBRA. 

Together group chief executive designate Gerald Grimes says: “We are delighted to announce the pricing of our inaugural second charge only RMBS. TABS 2ND1 is another exciting issuance for Together and will provide significant additional headroom to increase our residential lending as we continue to shape our business for an exciting future.”

The lender said that over the past 17 months it has raised or refinanced over £5bn of facilities across 12 transactions, including senior secured note issuances and private and public securitisations.

TABS 2ND1 is supported by a portfolio of second charge owner-occupied and BTL residential mortgages, secured against properties in England, Wales and Scotland.

Together group managing director and chief treasury officer Gary Beckett comments: “This is our fourth funding transaction since January and our eighth public MBS since 2017, underlining the quality of our loan book and the continued support for the Together growth story.”

“TABS 2ND1 will provide further depth to our funding profile and raise additional liquidity to support the group’s future growth ambitions,” Beckett adds. 

Lloyds, BNPP and Citibank acted as joint lead arrangers accompanied by Natixis as joint lead managers on TABS 2ND1.