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Challenger bank to buy £396m mortgage portfolio


Challenger bank to buy £396m mortgage portfolio

Rochester Mortgages Limited has entered into a mortgage sale agreement to acquire approximately £396m of UK residential mortgage loans from DB UK Bank Limited.

Rochester, a subsidiary of OneSavings Bank, will purchase the loans from the Deutsche Bank subsidiary.

Completion of the deal is conditional on OneSavings Bank establishing an off-balance sheet securitisation vehicle which will acquire approximately £374m of the portfolio, leaving around £22m on the balance sheet.

OneSavings Bank will act as co-arranger of the securitisation, along with Morgan Stanley.

Deutsche Bank expects to purchase notes and residual certificates in the securitisation and may seek to sell them to third party investors.
 



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