Keystone Property Finance has completed its first-ever securitisation, worth £400m.
The securitisation with Hops Hill No.1 PLC was originated under a forward flow agreement between Keystone and UK Mortgages Limited, a listed investment company managed by TwentyFour Asset Management.
The arrangement is the first to include an element of pre-funding, allowing a portion to be used on loans currently in the pipeline, since the start of the coronavirus crisis.
Keystone originates loans for Santander, National Australia Bank and Standard Chartered Bank (acting on behalf of UKML) and achieved Sonia +95bps for the AAA senior notes.
Keystone and UKML will use the capital released from the deal to boost further lending and to bring new products to the broker market in 2021.
The specialist buy-to-let lender will utilise a second warehouse facility through UKML to provide it with funding.
Keystone has also promoted chief operating officer Elise Coole to managing director with immediate effect. She is tasked with growing the specialist lender’s presence in the market and will play a leading role in deciding the firm’s future strategy.
Coole has more than 15 years in the finance industry, including at Commerzbank AG and Heylo Housing.
Coole says: “This securitisation represents a landmark moment for Keystone and is another nod to the skills, capability and years of dedication put in by our superb team here in Kent.
“The fact we were able to attract such strong investment in the middle of a global pandemic is a testament to the quality of the lending the team here carry out on a daily basis and the confidence investors have in that process.
“This deal, and our second warehouse, gives us even more certainty during trying times for the mortgage market and the wider world and will allow us to bring exciting and competitively priced products to the broker market in the coming weeks and months.
“There is plenty more to come from Keystone in 2021 and we can’t wait to share this with our loyal brokers in the near future.”
