Charter Mortgage Funding 2018-1: 10 June 2018

A static standalone issue, where the Issuer will make payments on the Notes from payments of principal and revenue received from a portfolio comprising mortgage loans and their related security originated by CCFS under its trading name of Precise Mortgages and secured over residential properties located in England, Wales and Scotland and sold by CCFS (in its capacity as the Seller) to the Issuer on the Closing Date. The Issuer confirms that the assets backing the issue of the Notes and the Notes themselves are not part of a re-securitisation.

This transaction represents the second public securitisation transaction that is backed exclusively by prime residential mortgage loans originated by Charter Court Financial Services under its trading name of Precise Mortgages.

As at the Portfolio Reference Date, the Provisional Portfolio comprised 1,923 fully amortising repayment loans originated by the Seller between 31 July 2014 and 30 April 2018, secured over owner-occupied properties located in England, Wales and Scotland. All mortgages are first legal mortgage / first ranking standard security, all were subject to a full property valuation and none were in arrears. The average current balance is £158,291 and the largest is for £751,427. Interest rate types: Fixed Rate Loan reverting to LIBOR 75.49%, floating linked to Libor 24.51%.

Additional information (% of current balances): self-employed borrowers 37.05%, first time buyers 40.00%, refinanced loans 23.96%. The WA current LTV is 70.61% (original LTV 72.29%) and the WA seasoning is 11.58 months. Regional concentration (by current balances): South East incl. London 30.03%, East Anglia 12.56%, South West 11.00% and the North West 9.46%.


CRR 405: On the Closing Date the Seller will, as an originator for the purposes of the CRR, the AIFM Regulation and the Solvency II Regulation, retain on an ongoing basis a material net economic interest of not less than 5% in the securitisation. Such interest will comprise retention of randomly selected exposures equivalent to no less than 5% of the nominal value of the securitised exposures, where such exposures would otherwise have been securitised in the transaction.

The Seller, as the sponsor under the U.S. Risk Retention Rules, does not intend to retain at least 5% of the credit risk of the securitised assets for purposes of compliance, but rather intends to rely on an exemption provided for in Section 20 of the U.S. Risk Retention Rules regarding non U.S. transactions.

Volcker Rule: The Issuer is of the view that it is not now, and immediately after giving effect to the offering and sale of the Notes and the application of the proceeds thereof on the Closing Date will not be, a "covered fund".


Compare/contrast: Charter Mortgages 2017-1, Precise Mortgage Funding 2018-2B, Holmes Master Issuer (2018-1)