Ashurst advises on three public residential mortgage-backed securitisations

Global law firm Ashurst has advised on three public RMBS transactions backed by residential mortgages including inaugural public securitisations for Hampshire Trust Bank and MT Finance as well as advising Lloyds Bank Corporate Markets as arranger on the latest securitisation by Shawbrook Bank of loans originated by Bluestone Mortgages.

Hampshire Trust Bank inaugural public securitisation

Winchester 1 PLC issued £300m of notes in November 2024 backed by a portfolio of residential buy-to-let mortgage loans originated and sold by Hampshire Trust Bank. The transaction was arranged by Santander Corporate and Investment Banking and BNP Paribas.

Ashurst was delighted to act for Hampshire Trust Bank on its inaugural public securitisation of buy-to-let mortgage loans. Strong demand from investors allowed HTB to preplace the lower mezzanine and equity tranches and certificates of the stack, with the class A to D notes fully subscribed through the public offer process. The transaction was notable as being one of the first public securitisations to be regulated under the new UK Securitisation Framework, which came into force on 1 November 2024.

MT Finance inaugural public securitisation

Also in November 2024, Pierpont BTL 2024-1 plc issued £300m of notes backed by two portfolios of residential buy-to-let mortgage loans, including a portfolio of loans originated by MT Finance.

Ashurst was pleased to once again advise MT Finance on the sale of its portfolio into its inaugural public securitisation, following advice on the initial forward-flow origination and sale to JP Morgan Chase Bank. The transaction was arranged by J.P. Morgan Securities.

Shawbrook Bank second securitisation of Bluestone Mortgages loans

At the end of October 2024, Ealbrook Mortgage Funding 2024-1 PLC issued £400m of notes backed by a portfolio of non-conforming residential mortgages originated by Bluestone Mortgages, a subsidiary of Shawbrook Bank.

Ashurst advised Lloyds Bank Corporate Markets as arranger, lead manager and hedge counterparty on the transaction. The transaction represented the second securitisation of loans originated by Bluestone, with Shawbrook preplacing the class B to E notes and residuals, while retaining the class A notes.

The Ashurst team for the three transactions was led by partner Thomas Picton and senior associate Henry Hillind, supported by associates Courtney Kinnely and Mark O’Reilly. Tax advice was led by partner Paul Miller, supported by associate Luis De Freitas, with hedging advice led by partner James Knight and supported by associate Lydia Huxtable.