Securitisation of Buy-to-Let mortgages and disposal of junior economic interest in PMF 2024-2 plc

OSB GROUP PLC (“Group”) today announces that its subsidiary Charter Court Financial Services Limited has priced a securitisation, PMF 2024-2 plc, of c. £1.25bn of Buy-to-Let mortgages, which is expected to complete on or around 12 December 2024. The Group has also agreed to sell its junior economic interest in the transaction.

The transaction, once complete, is expected to result in the de-recognition of the underlying mortgages from the Group’s balance sheet and a corresponding reduction in gross loans. On this basis, the transaction is expected to be broadly neutral for the Group’s 2024 financial results and would, on a pro-forma basis, have increased the Group’s CET1 ratio by 0.6 ppt at 30 June 2024. BofA Securities have been mandated as sole arranger and lead manager for the transaction.

Andy Golding, CEO of OSB GROUP PLC, said:

“I am pleased that OSB has undertaken its 26th securitisation of mortgage assets and the third of 2024, demonstrating our continued ability to originate quality loan portfolios and expertise in executing structured balance sheet optimisation transactions. This securitisation and disposal of the junior economic interest in the transaction is expected to reduce the potential impact from changes in customer behaviour in the reversion period. Funds will be used to support the repayment of drawings under the Bank of England’s Term Funding Scheme for SMEs (TFSME).”

OneSavings Bank (OSB)

OSB originates mortgages via specialist brokers and independent financial advisers through its specialist brands including Kent Reliance for Intermediaries and InterBay Commercial. It is differentiated through its use of highly skilled, bespoke underwriting and efficient operating model.

OSB is predominantly funded by retail savings originated through the long-established Kent Reliance name, which includes online as well as a network of branches in the Southeast of England. Diversification of funding is currently provided by securitisation programmes and the Bank of England’s Term Funding Scheme with additional incentives for SMEs.

Charter Court Financial Services Group (CCFS)

It is differentiated through risk management expertise and automated technology and systems, ensuring efficient processing, strong credit and collateral risk control and speed of product development and innovation. These factors have enabled strong balance sheet growth whilst maintaining high credit quality mortgage assets.

Important disclaimer

Non-IFRS performance measures