TPMF 2016 - Granite 3 Plc: 17 December 2016

Another stand-alone transaction in the Towd Granite series, where on this occasion the Issuer will make payments on the notes from payments of principal and revenue received from a portfolio comprising unsecured personal loans that were purchased by the Seller from Landmark Mortgages Limited (formerly known as Northern Rock plc and latterly as Northern Rock (Asset Management) plc).

As at 31 October 2016, the full portfolio consisted of 27,212 personal loans, where the average current loan size is £10,746 and there are no loans of greater than £40,000 in the pool. Interest rate type: Floating – 86.58%, Fixed – 13.42%. Of note, CCJs account for 10.41% of the pool and IVAs for 1.31%. At close, some 10.77% of the pool was in arrears by 90+ days. The current WA indexed LTV is 66.87% (original LTV was 91.28%) and the WA seasoning is 126 months. Regional concentration (by current balances): North West – 15.80%, South East – 15.04%, Yorkshire & Humberside - 12.44%, Scotland 11.98% and the West Midlands – 9.43%.

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


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 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- Granite2 PLC, Feldspar 2016-1