OneSavings Bank plc, the challenger bank, announces its first securitisation transaction, Rochester Financing No. 1 PLC, which will sell £253m of Class A mortgage backed securities (expected ratings AAA/AAA from S&P and Fitch) and £20m of Class B mortgage backed securities (expected ratings AA+/AA from S&P and Fitch)
“This transaction represents strategic diversification of our funding profile and extends the maturity of our liabilities whilst validating the high quality of our asset base” said Andy Golding, Group Chief Executive of OneSavings Bank plc. “We are also pleased to announce our intention to offer mortgages through the Help to Buy mortgage guarantee scheme in early 2014, PRA capital rules permitting.”
OneSavings Bank plc, the lender that owns a number of mortgage brands including Kent Reliance, Prestige Finance and InterBay Commercial, continues to demonstrate its commitment to providing quality mortgage lending across a range of niche market segments, including residential, buy to let, 2nd charge and SME.
“Our support for Help to Buy, coupled with this diversification of funding, is a clear signal of that on-going commitment” Golding added.
Stephan Wilcke, OneSavings Bank plc Chairman, said:
“This is another important milestone in the turnaround and growth plan for OSB, establishing ourselves as a challenger bank. Our current trading both in volume and profitability is ahead of our previous expectations and we are cautiously optimistic about the future.”
Earlier this week Paul Broadhead, Head of Mortgage Policy at the Building Societies Association, told the trade press that smaller lenders would want to weigh up the benefits of capital relief with the additional costs associated with joining the Help to Buy scheme, such as reporting more information to the regulator. He said: “If you are a lender that has done securitisation before, you will be able to adopt this much quicker because you are used to providing all this information required by the Prudential Regulation Authority in order to be eligible for capital relief. It could be more challenging for lenders who have not done securitisation before.”