trending Market Intelligence /marketintelligence/en/news-insights/trending/blkb5uevo5pznrkzipf8ig2 content esgSubNav
In This List

UK Mortgages, TwentyFour Asset Management agree to acquire £350M mortgage pool

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


UK Mortgages, TwentyFour Asset Management agree to acquire £350M mortgage pool

UK Mortgages Ltd. and TwentyFour Asset Management LLP agreed to final terms for the acquisition of a roughly £350 million pool of buy-to-let mortgages recently originated through Coventry Building Society's Godiva brand.

The loans comprise "a high quality pool" of 2,077 buy-to-let mortgages with an average balance of about £169,000 and an average loan-to-value ratio of 60.8%. All the loans in the deal have approximately five years until the current fixed-rate period is due to end, with most falling between November 2022 and May 2023.

TwentyFour Asset Management will now proceed with the deal's financing phase. The company will use its current remaining capital but will also explore financing options in the market. Following the transaction, Coventry will continue to service the mortgage holders as its own clients.

This marks UK Mortgages' second transaction with Coventry following a £310 million purchase of buy-to-let loans from the latter in November 2015. That pool, according to the statement, continues to "perform exceptionally well."

"With current mortgage margins at tighter levels than they were at the time of the previous purchase, the overall yield of the transaction will likely be lower than before," UK Mortgages said.