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HBOS £500m landmark deal is first securitisation for year

HBOS has completed the first public UK residential mortgage-backed securitisation since the liquidity squeeze took hold of the market last July.

The £500m RMBS deal will provide the first ray of hope that the UK mortgage market is on the road to recovery.

HBOS says the securitisation is from its Permanent Master trust programme and is made up of prime UK residential mortgages from its Halifax brand.

A spokesman says the deal was sparked by enquiries from a number of investors. He says: “We have created a placed deal to a small group of investors: 50 per cent banks and 50 per cent insurance companies – both UK and international institutions. The loans in this securitisation are prime UK residential mortgages, all originated by HBOS under its Halifax brand.”

HBOS says this is the first public UK residential mortgage-backed securitisation deal completely placed to investors since July 2007. “It reflects the strength of HBOS and our quality as an issuer of RMBS. Given our position in UK RMBS, HBOS decided to take the first step to help open up the market. We have had a very positive response.”

London & Country mortgage specialist Richard Morea says: “This is good news and hopefully it will continue. It does not surprise me it is a lender like Halifax. Their mortgage book is full of low loan to values so is pretty good quality.”

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