Hadrian Funding 2025-1plc: 03 July 2025

This will be the second public securitisation from the Newcastle Building Society. Once again it will be a standalone transaction, but on this occasion the payments of principal and revenue will be from a portfolio comprised of owner-occupied mortgage loans and secured over residential properties located in England and Wales.

The Newcastle Building Society is, in terms of total assets at 31 December 2024, the largest building society based in the North East of England and the seventh largest building society in the United Kingdom, with assets of £6.223 billion.

At the cut-off date (28 February 2025) the portfolio consisted of 5,196 loans, advanced on 4,841 properties. The average current loan balance is £170,276 and the average per property is £182,763. Loan purpose: purchase – 78.00%, re-mortgage – 21.73%, other - 0.27%. Repayment Method: repayment – 92.26%, P&P – 5.64%, interest only – 2.10%. Interest Rate Type: fixed – 84.97%, discount – 9.96%, floating – 5.07%. The WA current indexed LTV is 66.45% (original LTV was 75.31%) and the WA seasoning is 30.08 months. Geographical Distribution: Scotland – 12.54%, South East – 11.58%, North West – 11.26% and London – 10.40%.

UK & EU Risk Retention: Newcastle Building Society (the Retention Holder) will, as Originator, retain a material net economic interest, on an on-going basis, of at least 5% of the nominal value of the securitised exposures in accordance with and as required by Article 6(1) of Regulation (EU) 2017/2402. As at the Closing Date, such interest will be comprised of the Retention Holder holding an interest in the Class B Notes in accordance with Article 6(3)(d) of the UK Securitisation Regulation.

US Risk Retention: The Seller does not intend to retain at least 5% of the credit risk of the Notes for the purposes of the US Risk Retention Rules, but rather intends to rely on an exemption provided for in Section 20 of the US Risk Retention Rules regarding non-US transactions.

STS: NBS will, within fifteen business days of the Closing Date, procure a notification to be submitted to the FCA that the requirements of SECN 2.2.2R to SECN 2.2.29R have been satisfied.

Compare/contrast: Tyne No.1, Elvet Mortgages 2025-1, London Bridge Mortgages 2025-1 plc