Santander £3.7bn RMBS is the biggest since 2007
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Santander UK breathed life into the securitisation market last week by launching a £3.75bn deal - the largest publicly placed UK residential mortgage-backed securitisation since 2007.
Unlike the £4.7bn securitisation by the Royal Bank of Scotland last September and other RMBS transactions issued in the UK, it does not include a put option, which gives buyers the opportunity to sell back their purchase.
The notes will be secured by a portfolio of UK prime, first charge, owner-occupied residential mortgages originated by Alliance & Leicester.
Justo Gomez, chief financial officer of Santander UK, says: “The size of this deal is another significant step for European RMBS.”
In March Northern Rock issued a £370m securitisation while Skipton Building Society also issued a £500m transaction earlier in the year.
PMS executive chairman John Malone says it is significant that a lender as big as Santander issued the RMBS.
He says: “The market saw some RMBS deals last year but because this is from a global bank such as Santander it shows the market is opening up.
“Nobody in the market is cracking open the champagne yet but there are signs that the mortgage industry is in a more positive position compared with last year.”
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