Cynergy Bank has launched its first mortgage-backed security (MBS).

The firm’s first securitisation is a cash derecognition residential MBS called Lovelace CBP 01.

It is backed by buy-to-let mortgages secured on residential and commercial properties.

The bank said the MBS launch allows it to achieve capital relief while still serving landlords.

Cynergy said the deal has two unique features: it ensures that lending to customer groups are either fully in or out of the transaction and features a two-year replenishment period, during which time the Bank can sell in further lending to customer groups already in the pool.

Lloyds Bank Corporate Markets acted as arranger on the transaction.

Cynergy Bank director of group treasury Nicholas Fuller said: “This transaction demonstrates Cynergy Bank’s ability to innovate in securitisation while keeping customer needs at the heart of our approach. The replenishment period gives us the flexibility to support existing borrowers with further advances and product switches, while delivering capital efficiency and balance sheet optimisation.”

Cynergy hopes to launch more MBS’s in the future, all named after UK innovators. The Lovelace MBS is named after Ada Lovelace, a pioneer of maths and computing.

Thousands of UK landlords are expected to leave the private rental sector in 2026, according to property purchasing firm LandlordBuyer.