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KBRA Assigns Preliminary Ratings to UK RMBS Securitisation

Strategic Insights

— 1 min read

A UK residential mortgage-backed securities (RMBS) transaction, Bletchley Park Funding 2025-1 PLC, has been issued with preliminary ratings by Kroll Bond Rating Agency, LLC's (KBRA) UK business. The transaction is backed by a portfolio of first-ranking buy-to-let mortgage loans secured on residential properties in England, Wales, and Northern Ireland, with an aggregate balance of GBP 274.7m as of 30 April 2025. Quantum Mortgages Ltd. (QML), a specialist buy-to-let lender, originated the loans, which are part of QML's second public securitisation and the first to be rated by KBRA.

Key Takeaways:

  • The Bletchley Park Funding 2025-1 PLC transaction features a sequential amortisation structure, a Liquidity Reserve Fund, interest rate hedging via a fixed-floating swap, and principal deficiency ledgers for each rated class, typical to UK RMBS issuances.
  • Quantum Mortgages Ltd. (QML) is a relatively new lender in the UK specialist lending sector, targeting professional landlords and specialist property types through several products, including single residential units, HMOs, multi-unit blocks, holiday lets, and semi-commercial assets.
  • QML's loan book has grown to approximately GBP 489m as of April 2025, with this being their second public securitisation and the first to be rated by KBRA.
  • BCMGlobal Mortgage Services Ltd. will be the servicer of the portfolio, with over 25 years' experience of servicing assets across Europe.
  • Kroll Bond Rating Agency, LLC (KBRA) is a full-service CRA registered with the US Securities and Exchange Commission as an NRSRO and has various registrations across Europe and the UK.

Statistics:

  • GBP 489m: Quantum Mortgages Ltd.'s loan book as of April 2025.
  • GBP 274.7m: Aggregate balance of the provisional portfolio as of 30 April 2025.
  • GBP 489m: Quantum Mortgages Ltd.'s loan book size, indicating significant growth since its establishment in 2021.
  • 25 years: BCMGlobal Mortgage Services Ltd.'s experience of servicing assets across Europe.
  • 2: Quantum Mortgages Ltd.'s second public securitisation since 2021.

Sources:

M2 COMMUNICATIONS, "KBRA Assigns Preliminary Ratings to UK RMBS Securitisation" (https://www.m2.com).

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