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Securitisation bolsters Mortgages plc

Sub-prime lender Mortgages plc says its securitisation of £180m of

mortgage assets will bring greater scope in its future lending.

The securitisation is being managed by Barclays Capital and Merrill Lynch.

The lender is planning a further £200m securitisation to be managed by

Morgan Stanley later this year.

Mortgages plc describes itself as having a “great appetite for business”

for the coming year and says the securitisation will boost its lending

creativity.

Securitisation is a method of recycling assets to allow providers to

continue to lend money.

Non-conformist lenders are often under pressure to secure higher levels of

assets to guarantee their lending capacity. With a funding capacity of

£550m, Mortgages plc says it could afford to wait for the right

opportunity.

Chief executive Trevor Pothecary says: “We have been waiting for some time

for the right market conditions to get this securitisation under way. We

are fortunate that we are not dependent on securitisation as we have

substantial funding lines already in place which means that we have been

able to pick our time to secure the best execution.”

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