Lloyds launches £3.4bn RMBS deal

Lloyds Banking Group has launched a securitisation deal backed by mortgages from Cheltenham & Gloucester and Lloyds TSB worth £3.4bn.

The residential mortgage-backed securities deal is made up of prime loans with an average LTV of 65% and has been issued through the bank’s Arkle master trust programme.

It represents the first deal issued by Lloyds group using C&G and Lloyds TSB mortgages since May 2007.

The pool of loans backing the deal is made up of 315,535 mortgage accounts with a balance of £31.27bn.

Lloyds group has already launched two securitisations over the last year through a separate vehicle called the Permanent programme, which uses mortgages originated by its HBOS subsidiary.

The first deal of £4bn was issued last September, with a second issuance in January worth £2.5bn.