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Share Name Share Symbol Market Type Share ISIN Share Description
Uk Mortgages Limited LSE:UKML London Ordinary Share GG00BXDZMK63 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 71.40 70.20 72.60 54,443 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 48.3 6.2 2.3 31.0 166

UK Mortgages Ltd Second Keystone Warehouse and Progress Update

06/04/2021 12:30pm

UK Regulatory (RNS & others)


 
TIDMUKML 
 
Second Keystone Warehouse and Progress Update 
 
THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, 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. 
 
6th April 2021 
 
                             UK MORTGAGES LIMITED 
 (a closed-ended investment company incorporated in Guernsey with registration 
                                 number 60440) 
 
                           LEI 549300388LT7VTHCIT59 
 
Second Keystone Warehouse and Progress Update 
 
The Board of UK Mortgages Limited ("UKML", the "Company") and TwentyFour Asset 
Management LLP ("TwentyFour") are pleased to announce that the Company has 
completed the arrangement and signing of a new warehouse facility arranged by 
Santander Corporate and Investment Banking ("Santander"), called Cornhill 
Mortgages No.7 Limited. This will fund the forward flow purchases of newly 
originated Buy-to-Let mortgage loans from the Company's ongoing arrangement 
with Keystone Property Finance ("Keystone") following the highly successful 
securitisation of the first pool of Keystone loans into the Hops Hill No.1 
securitisation in January of this year. 
 
Santander, who were Joint Arranger and Joint Lead Manager on Hops Hill No.1 as 
well as Sole Arranger and Joint Lead Manager for the Company's Oat Hill No.2 
transaction in July 2020, will also be the swap provider for the facility. The 
transaction is intended to fund portfolio growth to a size suitable for a 
further public securitisation into what is then be expected to be the second 
Hops Hill transaction. 
 
Performance of the original loan pool has been extremely strong with no loans 
currently in arrears, and just 29 Covid-19 payment holidays granted from over 
1,900 loans originated, almost all of which have already begun repayments of 
their deferred amounts. The risk profile of the new portfolio is expected to 
remain broadly similar to the previous one. 
 
Since Keystone commenced lending in partnership with UKML in late 2018 and have 
subsequently become further established as a standalone lender, their monthly 
origination levels have continued to grow, culminating in a record month in 
March 2021 with over £40m of origination. This means that the pre-funding phase 
of the Hops Hill No.1 transaction has been completed early (other than any 
loans which might be used to replace any prepayments that might occur between 
now and the first Interest Payment Date in May) thereby enhancing value for the 
Company, and once the final elements of capital remaining in the previous 
Cornhill No.4 facility have been utilised today, funding from the new facility 
is expected to commence from tomorrow, Wednesday 7th April. Furthermore, the 
early completion of the Hops Hill No.1 pre-funding means the additional 
origination, which already includes an extremely healthy pipeline of well over 
£100m, will go into the Cornhill No.7 vehicle sooner than expected, thereby 
initiating the growth of further returns for the Company earlier. 
 
Overall, this means that in just 4 months since shareholders approved the 
revised fund mandate last December, all of the major objectives from that 
proposal have now essentially been accomplished:- the securitisation of the 
first Keystone portfolio, the agreed sale of the two lower-yielding Coventry 
portfolios; with one sale and the resultant first tender already completed and 
with the second sale and subsequent tender expected to take place in late May 
and early June respectively, and now the agreement for the second Keystone 
warehouse has been finalised and will begin funding almost immediately. 
Furthermore, all these objectives have been achieved on better terms than 
originally indicated and/or in an accelerated timeframe - thereby locking in 
and adding value for and to the Company. 
 
As a result, the Company is now firmly positioned to deliver its primary 
objective of generating stable long-term income for investors, and with 
additional income growth now forthcoming from this new facility. 
 
For 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. 
 
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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April 06, 2021 07:30 ET (11:30 GMT)

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