Ratings agency Moody’s says that the issue is backed by a pool of prime UK residential mortgages from A&L, and is the fourth issue from its Fosse Master Trust securitisation vehicle.
The last RMBS deal from A&L was a £400m deal in August 2008, and at the time was only the second securitisation deal since the credit crunch hit in 2007.
This latest A&L deal is the first time this year Santander has entered the securitisation market.
The Co-operative Bank launched its first RMBS deal worth £2.5bn under the Silk Road Finance Number One programme last week backed by prime mortgages from its subsidiary Britannia.
It followed a £2.5bn securitisation deal from the Lloyds Banking Group at the end of January, which the bank said was partially driven by US investor demand.
A separate issue launched by Lloyds last September worth £4bn was heralded by some in the industry as the re-opening of the European securitisation market.
Nationwide followed with a deal of its own worth £3.5bn a month later.