The Northview Group completes £250m securitisation

The deal is made up of Kensington Mortgages prime new originations, with no buy-to let loans and no arrears and a weighted average LTV of 76%.

The senior notes of the transaction were 1.2 times oversubscribed at final spread. They were priced at three-month Libor, plus 85 basis points for a duration just short of four years.

This is the fourth securitisation from the prime owner-occupied shelf Gemgarto and brings the total NVG issuance of notes backed by new completions since 2015 to over £3 billion.

The transaction further includes £35 million of prefunding in order to fund upcoming Kensington owner-occupied completions in this transaction.

Alex Maddox, capital markets director at The Northview Group, said: “Despite a challenging market, heightened by a period of market volatility and reduced investor availability after a busy month of primary issuances in June, the Northview Group managed to access the market one more time before the European holidays. A total of 16 accounts were involved in the transaction with banks taking the lion’s share at 69% of the total book (evidencing the prime nature of this deal) while we saw a strong participation of domestic investors exceeding 90% of the demand.

"Investors continue to be attracted by the very strong performance of the overall Kensington new origination book, with only 9 properties being repossessed across all of its originations since 2010. After a successful 2017, the Northview Group remains the most active issuer of securitisations, with £7.3 billion public bonds issued over 13 deals since March 2015.”