Molo and ColCap UK have completed their first £300m securitisation of buy-to-let mortgage loans in England and Wales.
The deal is a residential mortgage-backed security transaction called ‘Molossus BTL 2024-1’ containing prime landlord properties.
The package received an AAA rating from Fitch and S&P Global. The ratings were for 87.5% of the pool and the senior tranche was priced at 0.95% over Sonia.
Australian non-bank finance firm ColCap took an 80% shareholding in UK digital mortgage lender Molo last March, for an undisclosed sum.
ColCap said at the time it would use its investment to “leverage Molo’s digital expertise” to accelerate its international expansion into the £310bn UK mortgage market.
Molo chief executive Matt Kimber (pictured, right) says: “The success of this residential mortgage-backed security deal highlights the strength of Molo’s mortgage lending capabilities and the credit quality of our originations.”
ColCap UK executive director Esther Morley adds: “Today’s successful residential mortgage-backed security announcement demonstrates growing confidence in the UK property market and in the quality of Molo’s BTL portfolio.
“This strategic move with Molo is the first of many and demonstrates our commitment to innovation.
“It also marks the beginning of a new chapter for ColCap in the UK market. It sets the stage for further collaborations and growth opportunities, benefiting both our UK operations and our broader global presence, including ColCap Australia.”
