The restructuring aims to enhance the company’s residential mortgage-backed securitisation (RMBS) programmes, ensuring greater efficiency and flexibility in its funding model.
Programme Details
The newly structured programme comprises two distinct facilities:
- £1.2 billion Kingsway Asset Backed Securitisation – dedicated to first-charge RMBS issuances.
- £387 million Wilmslow Asset Backed Securitisation – supporting second-charge RMBS issuances.
Both facilities feature enhanced commercial terms and extended maturities until December 2029. Additionally, four new banking partners have been added, strengthening Together’s funding base.
Continuous Growth and Market Adaptation
Initially launched in 2007 as a £500 million revolving securitisation facility, CABS has undergone multiple expansions over the years—growing to £675 million in 2014, £1 billion in 2016, and £1.25 billion in 2018. The latest restructure aligns the lender’s funding strategy more closely with its RMBS programme, which provides financing for owner-occupier and buy-to-let mortgages.
Gary Beckett, Together’s Group Managing Director and Chief Treasury Officer, highlighted the significance of the move:
“We are pleased to announce the transformation of our CABS securitisation into two bespoke warehouse facilities that will further strengthen our highly successful first and second charge RMBS issuances. This separation, under improved terms, underscores the ongoing strength of our business and the confidence of our funding partners.”
Strong Financial Performance
Together has been actively raising funds, securing or refinancing over £3.3 billion across seven transactions in 2024. The company also reported strong financial results for the quarter ending 30 September 2024, including:
- £269.3 million in average monthly loan originations
- A record loan book of £7.6 billion
- Underlying pre-tax profits of £53.7 million for the quarter
With this latest expansion, Together strengthens its position as a leading non-bank lender, ensuring continued growth and stability in its mortgage-backed securities market.
FAQs
What is Together Financial Services?
Together Financial Services is an alternative lender specializing in secured loans, mortgages, and commercial finance, catering to both individuals and businesses.
What is the Charles Street securitisation programme (CABS)?
CABS is a revolving securitisation facility initially launched in 2007, designed to fund residential mortgage-backed securities (RMBS) and support Together’s lending activities.
What does the restructuring of CABS involve?
The restructuring splits CABS into two new warehouse facilities—£1.2 billion Kingsway Asset Backed Securitisation for first-charge RMBS issuances and £387 million Wilmslow Asset Backed Securitisation for second-charge RMBS issuances.
How does this restructuring benefit Together?
The restructure enhances funding efficiency, provides better commercial terms, extends maturities until December 2029, and introduces new banking partners to strengthen Together’s financial base.
What are RMBS issuances?
Residential Mortgage-Backed Securities (RMBS) are financial instruments backed by pools of residential mortgages. These securities are sold to investors to raise capital for mortgage lending.
How has Together’s securitisation programme evolved over time?
Since its launch in 2007, CABS has expanded from an initial £500 million facility to £1.25 billion in 2018. The latest restructure brings the total value to £1.59 billion across two facilities.
What financial performance did Together report recently?
For the quarter ending 30 September 2024, Together reported £269.3 million in average monthly loan originations, a record loan book of £7.6 billion, and pre-tax profits of £53.7 million.
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