Skipton Building Society is to launch a securitisation backed by a pool of mortgage loans totalling between £450m and £550m.
The transaction, called Darrowby no 2, is made up entirely of prime residential mortgages originated by Skipton since 2001.
The average loan-to-value ratio is around 60 per cent. The deal has not yet been priced, although this and the total pool size are likely to be decided next week.
Both Fitch Ratings and Moody’s have given the transaction a provisional AAA rating.
This is the second time the society has entered the securitisation market, the last issue being a £1.2bn bond called Darrowby no 1 in March 2011.
Societies have been particularly active in the RMBS market in the past two months, with West Bromwich, Coventry, Nationwide and Leeds setting up £410m, £1bn, £1.5bn and £250m bonds respectively.
Coreco director Andrew Montlake says: “It is good to see some more securitisation back into the market. It means that these lenders can free up their back books and hopefully lend more.”