31/03/2016
UK Mortgages Limited
(a closed-ended investment company incorporated in Guernsey with
registration number 60440)
Investment Update
The Board of UK Mortgages Limited (the “Company”) and TwentyFour
Asset Management LLP (TwentyFour) are pleased to present an update
on progress with further investments.
Existing transactions
The portfolio has continued to perform as expected, with just
one loan in arrears out of a total 1703 accounts, which has since
cured and is now fully current. This performance is
materially better than the industry average.
New transactions
The portfolio management team remains fully engaged on a number
of prospective opportunities with the aim of fully investing the
Company’s capital in as timely a manner as possible. As stated
previously, transactions are generally subject to non-disclosure
agreements, as full disclosure before final closing would lead to a
loss of competitive advantage. However, we have endeavoured to
provide as much detail as possible on deal progression.
1 – The Mortgage Lender (TML)
The fund has continued to make steady progress with an exclusive
arrangement with TML. Since the last NAV publication, we have
finalised the mortgage product details, hedging and other key parts
of the transaction, and are currently working on the final
component which is interim financing pre-securitisation. This
deal is expected to close within the next 4-6 weeks and we will
inform investors when completion has taken place.
2 – Vintage pools
We are in continued discussions on two vintage pools of
mortgages. Both of these pools were originated pre-2007, and
are different in nature and from different originators. Neither
sale is driven by asset performance, which is strong in both cases.
Both pools are more than large enough to enable a public senior
securitisation subsequent to initial purchase.
3 – Buy to Let
The news regarding this segment is unchanged from the previous
month. TwentyFour continues to be in discussions with a
mainstream mortgage lender regarding a portfolio of newly
originated BTL loans, although timing expectations on this are now
likely to fall into Q3 2016.
4 – New Opportunities
The team is fully engaged in a pipeline of additional
investments for the Fund and will continue to keep investors
updated on progress as and when appropriate. We have been
pleased to note that a couple of the transactions we are
considering are as a result of reverse enquiries from seasoned
market participants.
5 – Business Developments
From a business perspective, the team has been bolstered by the
addition of further resource. The mortgage business is now
supported by three partners and five further professionals.
This demonstrates the commitment of time and resources that we have
given to the strategically important business line.
Copies of the factsheet can be downloaded from the Company's
website:
www.twentyfouram.com/funds-and-services/uk-mortgages-ltd
Or can be viewed here:
http://content.prnewswire.com/documents/PRNUK-1605160909-A2C0_UK_Mortgages_Ltd_Factsheet_March_2016_CC.pdf
For further information, please contact:
John Magrath +44 (0)20 7015 8900