UK Mortgages Ltd New Warehouse Lending Facility for TML

 
TIDMUKML 
 
UK Mortgages Ltd: New Warehouse Lending Facility for The Mortgage Lender 
("TML") 
 
THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, 
RELEASE OR DISTRIBUTION DIRECTLY OR INDIRECTLY IN OR INTO OR FROM THE UNITED 
STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF 
IRELAND OR JAPAN. 
 
6 August 2019 
 
                             UK MORTGAGES LIMITED 
 (a closed-ended investment company incorporated in Guernsey with registration 
                                 number 60440) 
 
                           LEI 549300388LT7VTHCIT59 
 
 
New Warehouse Lending Facility Completed for The Mortgage Lender ("TML") 
 
The Board of UK Mortgages Limited (the "Company") and TwentyFour Asset 
Management LLP are pleased to announce that the Company has completed the 
arrangement and signing of a new warehouse facility arranged by HSBC Bank plc, 
called Cornhill Mortgages No.5 Limited. This will fund the forward flow 
purchases of newly originated owner-occupied residential mortgage loans from 
the Company's ongoing arrangement with TML following the completion of the 
pre-funding phase of the Barley Hill No.1 securitisation from earlier this 
year, which concludes in August. The transaction is intended to fund portfolio 
growth to a size suitable for a further public securitisation into what will 
then be expected to be the second Barley Hill transaction. 
 
Unlike the previous forward flow warehouse for TML loans arranged in 2016 
(which was fully capitalised from the outset as TML, whilst operated by a 
highly experienced lending and management team, was a new lender at that time, 
and furthermore UKML's the Company's capital position was then at a large 
surplus) this transaction employs a far more efficient incremental 
capitalisation structure, similar to that employed with last year's Cornhill 4 
transaction. This new structure will allow the Company to maximise the 
efficiency of capital deployment and therefore leverage, minimising the cost of 
undrawn commitment fees. Swaps hedging will also be with HSBC Bank plc, a Aa2 
(cr)/AA- rated (Moody's/S&P) counterparty. 
 
Performance of the original loan pool has been extremely strong with just 4 
loans from over 1350 more than 3 months in arrears at the end of June 2019, and 
with a low weighted average Loan-to-Value ratio of 67.9%. Whilst lending 
criteria are likely to evolve on an ongoing basis in response to changing 
trends and needs in mortgage markets, the risk profile of the new portfolio is 
expected to remain broadly similar to the previous one. Furthermore, after 
slower than expected initial lending growth, primarily due to the effects of 
the post-Brexit-vote extraordinary monetary policy measures introduced just 
after TML began operating, TML have more recently been successfully growing 
their origination volumes, with July 2019 being a record month for both 
applications and completions. 
 
Further information: 
 
TwentyFour Asset Management LLP 
Rob Ford 
Douglas Charleston 
020 7015 8900 
 
Numis Securities Limited, Corporate Broker 
Nathan Brown 
Hugh Jonathan 
020 7260 1000 
 
 
Important notice 
 
This announcement has been prepared for information purposes only, it is not a 
prospectus. 
 
The distribution of this announcement in certain jurisdictions may be 
restricted by law. Persons into whose possession this announcement comes are 
required by the UKML, TwentyFour and Numis to inform themselves about, and to 
observe, such restrictions. 
 
Certain statements in this announcement are forward-looking statements which 
are based on UKML's expectations, intentions and projections regarding its 
future performance, anticipated events or trends and other matters that are not 
historical facts.  These statements are not guarantees of future performance 
and are subject to known and unknown risks, uncertainties and other factors 
that could cause actual results to differ materially from those expressed or 
implied by such forward-looking statements. TwentyFour's estimate of the 
potential gross IRR for this investment is calculated based on certain 
scenarios and subject to certain assumptions. This and any other references 
herein to potential future returns or distributions are targets and not 
forecasts and there can be no guarantee or assurance that they will be 
achieved.  Given these risks and uncertainties, prospective investors are 
cautioned not to place undue reliance on forward-looking statements. 
Forward-looking statements speak only as of the date of such statements and, 
except as required by applicable law, UKML undertakes no obligation to update 
or revise publicly any forward-looking statements, whether as a result of new 
information, future events or otherwise. 
 
The information contained in this announcement is subject to change without 
notice and neither the UKML, TwentyFour nor Numis assume any responsibility or 
obligation to update publicly or review any of the forward-looking statements 
contained herein. 
 
Recipients of this announcement who are considering acquiring New Shares in 
UKML are reminded that any such acquisition must be made only on the basis of 
the information contained in the Prospectus and any supplementary prospectus 
(es) thereto which may be different from the information contained in this 
announcement.  This announcement does not constitute or form part of and may 
not be construed as an offer to sell, or an invitation to purchase, investments 
of any description, nor as a recommendation regarding the possible offering or 
the provision of investment advice by any party.  No information in this 
announcement should be construed as providing financial, investment or other 
professional advice and each prospective investor should consult its own legal, 
business, tax and other advisers in evaluating any investment opportunity.  In 
particular, an investment in UKML involves a high degree of risk and 
prospective investors should read the section in the Prospectus entitled "Risk 
Factors" for further information. 
 
 
 
END
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