TPMF 2016 - Granite 2 Plc: 21 November 2016

Following on from Towd Granite 1, this is again a re-issuance of the Granite transactions, where the Issuer will make payments on the notes from payments of principal and revenue received from a portfolio comprising loans the equitable or beneficial interest in which will be sold by Cerberus European Residential Holdings BV, which were purchased by the Seller from Landmark Mortgages Limited (formerly known as Northern Rock plc and latterly as Northern Rock (Asset Management) plc) and secured over residential properties located in England, Wales and Scotland.

As at 31 August 2016, the Provisional Portfolio consisted of 9,762 loans (22,300 sub-accounts) secured over properties located in England, Wales or Scotland. The average current loan size is £20,085. Repayment type (by current balances): Interest only loans – 54.69%, Repayment – 45.19%, part & part 0.11%. Interest rate type: Floating - 95.13%, Fixed (to floating) – 4.87%. Of note, CCJs account for 13.94% of the pool and IVAs for 3.48%. At close, some 4.20% of the pool was in arrears of 90+ days. The current WA indexed LTV is 42.19% (original LTV was 77.95%) and the WA seasoning is 186 months. Regional concentration (by current balances): South East – 18.70%, North 17.19%, North West – 14.77%, Yorkshire & Humberside - 9.80% and Greater London – 8.89%.

Significant Investor: On the closing date, CERH will acquire (i) 100% of the Class E Notes and the Z Notes in compliance with the risk retention requirements as described above and (ii) 100% of the Certificates.


CRR 405: On the closing date, Cerberus European Residential Holdings BV will, as an originator for the purposes of the CRR … and the Solvency II Regulation, retain a material net economic interest of not less than 5% in the securitisation in accordance with the text of each of Article 405(1)(a), Article 254(2)(a) and Article 51(1)(a). As at the closing date, the retention will comprise the Retention Holder holding the Class E Notes and the Class Z Notes, as required by the text of Article 405(1)(d) of the CRR.


Compare/contrast: Granite Master Issuer plc (Mortgage Note Prog), Towd Point Mortgage Funding 2016 - Granite1 Plc, Feldspar 2016-1