Kensington Mortgages has raised £650m of funding through the wholesale financial markets.

The specialist mortgage lender said the deal is the largest public residential mortgage-backed securitisation (RMBS) to be successfully sold to investors following the easing of COVID-19 lockdown restrictions.

Kensington is also the first issuer to access the UK RMBS markets twice since the reopening of capital markets in mid-June, having raised in excess of £1bn in the last month.

The deal marks the twenty-first UK RMBS deal issued by Kensington since its acquisition by Blackstone and TPG in 2015, bringing the total bond issuance to over £11.5bn.

The latest transaction also allows Kensington to secure more funding to support growing demand from its mortgage customers.

“Since the markets reopened in June, the RMBS market has seen a flurry of activity,” Kensington Mortgages capital markets and digital director, Alex Maddox, commented.

“This deal’s oversubscription and the fact that we were able to follow a more standard syndication process demonstrates investor appetite for our funding and the strength of our underlying business. We continue to be the most frequent issuer of RMBS in the UK RMBS market, and see further opportunities for the year ahead.

“We anticipate the recently announced temporary stamp duty changes will help to kickstart the housing market and increase demand for mortgage products that are tailored and suited to individual’s needs. In this uncertain climate, people require pragmatic lenders who are able to take the long view.”

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