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Virgin Money launches first securitisation since Rock deal

Virgin Money has launched its first securitisation since it acquired Northern Rock in January.

The transaction, called Gosforth 2012-1, will be backed by a pool of UK prime, owner- occupied mortgages originated by Northern Rock.

The total pool size is thought to be around £500m, however, the transaction is not expected to price and close until early July.

The average loan-to-value of the pool is believed to be around 60 per cent, in line with previous issues. Moody’s has given the transaction a provisional AAA rating.

A Virgin Money spokesman says the issue will be used in part to support new mortgage lending. Bank of America Merrill Lynch, Barclays Capital, Deutsche Bank and Royal Bank of Scotland have been appointed as joint lead managers for the deal.

Stuart Gregory, director at Lentune Mortgage Consultancy, says: “Virgin is trying to get everything in place to challenge other lenders in the market. If this gives Virgin the ability to lend more, then it’s a good thing.”


Shine: How to survive and thrive at work

Here’s a tip. If Bono, the lead singer of U2, ever marches up to you and asks “who’s Elvis round here?” do not point him in the direction of the guy in the corner with the large quiff or the obese chap in finance who constantly munches burgers.

Caption competition

Countrywide’s Nigel Stockton (right) in the shadow of former English rugby player Martin Bayfield at the AMI dinner last week.


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