Expansion Details
Together Financial Services has announced a major restructuring and expansion of its Charles Street securitisation programme (CABS), increasing the facility from £1.25 billion to £1.59 billion. The non-bank lender has divided the programme into two distinct revolving warehouse facilities, strengthening its position in the residential mortgage-backed securities (RMBS) market.
Restructured Framework
The restructured framework comprises two separate 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.
These facilities feature enhanced commercial terms and extended maturities, now set to expire in December 2029. Additionally, four new banking partners have joined the programme, reinforcing Together’s financial backing.
Historical Growth
Initially launched in 2007 as a £500 million revolving securitisation facility, CABS has undergone multiple expansions over the years:
- £675 million in 2014
- £1 billion in 2016
- £1.25 billion in 2018
This latest move aligns Together’s funding structure more closely with its RMBS issuance strategy, which primarily finances residential owner-occupier and buy-to-let mortgages.
Executive Statement
Gary Beckett, group managing director and chief treasury officer at Together, emphasised the significance of the restructuring:
“This strategic separation enhances efficiency and aligns with our highly successful RMBS issuance programmes. The improved terms and additional funding partners underscore the strength of our business and the confidence of our financial backers.”
Financial Performance
Together has been proactive in securing funds throughout 2024, having raised or refinanced over £3.3 billion across seven transactions this year alone. The company also reported strong financial results for the quarter ending September 30, 2024, including:
- Average monthly originations of £269.3 million
- Record loan book of £7.6 billion
- Underlying pre-tax profits of £53.7 million
Industry Impact
With this latest expansion, Together continues to solidify its position as a key player in the UK’s specialist lending market, ensuring robust financial backing for its growing mortgage portfolio.
FAQs
What is Together Financial Services?
Together Financial Services is a UK-based specialist lender that provides residential and commercial mortgages, including owner-occupier and buy-to-let financing.
What is the Charles Street securitisation programme (CABS)?
The Charles Street securitisation programme (CABS) is Together’s funding structure for residential mortgage-backed securities (RMBS). It was first launched in 2007 and has undergone multiple expansions.
How has the CABS programme changed with this expansion?
The programme has been restructured into two separate warehouse facilities: Kingsway Asset Backed Securitisation (£1.2 billion for first-charge RMBS) and Wilmslow Asset Backed Securitisation (£387 million for second-charge RMBS). The total facility has increased to £1.59 billion.
Who are the new banking partners involved?
Together has not disclosed the names of the four new banking partners but has confirmed their participation in strengthening its financial backing.
What are the financial highlights of Together’s recent performance?
For the quarter ending September 30, 2024, Together reported:
- Average monthly originations of £269.3 million
- A record loan book of £7.6 billion
- Underlying pre-tax profits of £53.7 million
What does this expansion mean for the RMBS market?
This restructuring and expansion strengthen Together’s presence in the RMBS market, enhance efficiency, and provide greater financial backing for its mortgage portfolio.
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