Equity Release Funding (No.3) PLC Investor Announcement (4576Y)

TIDM39PV

RNS Number : 4576Y

Equity Release Funding (No.3) PLC

03 March 2017

3 March 2017

Equity Release Funding (No.3) PLC

(the "Issuer")

   Re:         GBP310,000,000 Class A2 Mortgage Backed Notes due 2033 (XS0169950531) 

GBP50,000,000 Class A3 Mortgage Backed Limited Price Index Notes due 2023 (XS0169950705)

GBP42,000,000 Class B Mortgage Backed Floating Rate Notes due 2038 (XS0169951000)

The Issuer has become accustomed to issuing quarterly Investor Reports in respect of the periods to 26 January, 26 April, 26 July and 26 October respectively.

An error has been identified in the financial reporting process used to generate the Loan to Values (LTVs) in those Investor Reports for the Loans in the Issuer's Portfolio. Property information that feeds into all LTVs in the Investor Reports has been found to be incorrect. Upon identification of the error an investigation was undertaken and the process used to generate the LTVs was reviewed, corrected and tested to ensure this issue was fully resolved.

The LTV reflects the current loan balance compared to the original property value. The Indexed LTV reflects the current loan balance compared to the indexed (using Halifax annual House Price Index) value of the property. The latest Investor Report was issued on 9 February 2017 in respect of the Period 26 January 2017. The weighted average unindexed LTV and indexed LTV were given in the Investor Report as 64.4 % and 36.1% respectively. Following investigation these should have read 70.7% and 39.4% respectively.

The next Investor Report will provide corrected information for all the erroneous LTVs issued on 9 February 2017. We confirm that we expect to issue the next Investor Report on or before 13 March 2017 in respect of the period to 26 January 2017.

This announcement has been shared with Credit Rating Agencies that provide ratings for the Issuer's Portfolio.

This notice is given by:

Equity Release Funding (No.3) PLC

3 March 2017

This information is provided by RNS

The company news service from the London Stock Exchange

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March 03, 2017 03:44 ET (08:44 GMT)