Inaugural Securitisation for UKML

UK Mortgages Limited

(a closed-ended investment company incorporated in Guernsey with registration number 60440)

The Board of UK Mortgages Limited (“UKML”) and TwentyFour Asset Management LLP (“TwentyFour”) are pleased to confirm that Malt Hill No.1 has successfully completed the public sale of £263.3mm of AAA-rated bonds as expected. The securitisation is backed by buy-to-let mortgages originated by Coventry Building Society Group (“Coventry”) and purchased in November 2015 by UK Mortgages Corporate Funding Designated Activity Company (“DAC”), the Acquiring Entity in which UKML has invested as described in its prospectus dated 23 June 2015.

The AAA notes were issued with a coupon of 3m LIBOR plus 1.35%, and provides 6.8x leverage on the IPO proceeds that have been invested in this transaction.

Ben Hayward, Partner at TwentyFour Asset Management said “We are very happy to have placed the bonds and achieved this price point. It is a level that reflects the very defensive structure and low level of leverage in the transaction, as well as the very high quality of the mortgage pool, despite the uncertain pre-referendum market environment.”

Chris Waldron, Chairman of UKML commented: “The Board is very pleased to see this transaction price. Malt Hill No.1 provides term funding for DAC’s ownership of the mortgage pool, and is proof of concept of UKML’s investment proposition that allows investors to access the returns from this non-correlated asset class.” 

Silvia Piva, Portfolio Manager at TwentyFour said “With this transaction, we demonstrate that UKML’s investment strategy is solid and its objectives achievable. We look forward to bringing further transactions to market as UKML and DAC continue to deploy their capital.”

For further information, please contact:

John Magrath    +44 (0)20 7015 8900