Rod Lockhart, chief executive at LendInvest

The Mortimer 2026-1 transaction, which includes £35m of pre-funding, attracted strong demand from institutional investors. Orders were 2.5 times the amount available for Class A notes, 3.8 times for Class B and 4.4 times for Class C.

The Class A notes were rated AAA by Morningstar DBRS and Fitch, and priced at 82 basis points over SONIA, broadly in line with the 81 basis points achieved on last year’s Mortimer 2025-1 transaction. The weighted average cost of funding across the capital structure fell to 88 basis points, from 92 basis points a year earlier.

All 1,240 mortgages in the portfolio were performing at the cut-off date. The portfolio had a weighted average current loan-to-value ratio of 73.23% and weighted average rental cover of 177.25%.

The deal also marks LendInvest’s first securitisation to qualify as a UK simple, transparent and standardised (STS) transaction. The framework is designed to make qualifying securities easier for investors to assess and can carry preferential capital treatment for certain investors, subject to regulatory requirements, potentially widening the pool of institutional buyers, including bank treasuries.

Securitisation lets LendInvest draw on its existing mortgage book to access institutional funding, which it can then recycle into further lending. For borrowers, it is a funding transaction behind the scenes rather than a change to their mortgage.

LendInvest has now completed eight Mortimer securitisations since launching the programme in 2019, alongside other institutional funding partnerships, bank facilities and capital markets arrangements. The firm has provided more than £9bn of property finance since inception. As of 31 March 2026, it reported £5.48bn of funds under management and £3.82bn of platform assets under management.

Rod Lockhart, chief executive at LendInvest, said: “The successful completion of our eighth Mortimer securitisation demonstrates the strength of LendInvest’s access to institutional capital. We saw strong demand across the capital structure and achieved a lower overall cost of funding than last year’s transaction.”

Lockhart claimed the deal was priced against “a more challenging market environment” than last year’s transaction, a characterisation the figures above don’t independently confirm.

“This is also our first UK STS securitisation, broadening the potential investor base for our assets and further strengthening the Mortimer programme as an important part of our funding platform.

“The strength of demand across the capital structure, including from bank treasury investors, reflects the broad institutional appetite for LendInvest’s mortgage assets. It also demonstrates the strength and depth of the investor relationships we have built through the Mortimer programme.”