Foundation Home Loans has announced the completion of its fourth securitisation under the Twin Bridges platform, since its inception in 2017.

Twin Bridges 2019-2 is Foundation’s third securitisation of 2019, and its first Sterling Overnight Interbank Average Rate (SONIA) trade, following the successful 2019-1 trade in May earlier this year.

Foundation Home Loans, the intermediary-only specialist lender, has said this reflects the significant growth in origination it has developed during the year.

Foundation Home Loans chief executive, Hans Geberbauer, commented: “To be announcing our third securitisation of 2019 – our fourth overall under the Twin Bridges platform – is incredibly satisfying and goes to show our rate of origination growth, and the demand for a quality mortgage book.

“We are also acutely aware that these are challenging times for the market and therefore the confidence our investors are showing in our proposition is testament to the quality of our operation, and the strength of our Treasury team.”

The lender has also said the trade attracted a record order book of over £850m, with all tranches of the £300m transaction at least two times over-subscribed. There were 31 orders in total – with over a third of the book coming from non-UK investors.

Foundation Home Loans has suggested that this has enabled margins to be tightened significantly from the initial price talk, and for the AAA tranche to price inside secondary pricing.

The transaction has followed Foundation Home Loans securing £750m in new and renewed committed warehouse funding, providing the lender with the capacity to fulfil its planned originations into 2021 – even in the event of a closed securitisation market.

“The further good news is that, regardless of future events, we now have the committed warehouse funding capacity to deliver our ambitious lending growth through to 2021,” Geberbauer added. “It is an exciting time for Foundation Home Loans, and we are just getting started.”

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