Kensington Mortgages has increased its existing warehouse facility by 30 per cent of funding capacity, on the back of expectations of higher volumes of originations in 2019.
This will allow Kensington to fund close to £1.4bn worth of new buy-to-let and owner-occupied mortgages this year.
As part of plans to lend more, Kensington added National Australia Bank as a new funder alongside Citigroup and BNP Paribas.
This is one of the largest UK mortgage warehouse lines for new residential mortgage originations. Despite market volatility due to Brexit uncertainty, this larger warehouse facility continues the success of Kensington’s wholesale funding platform.
Alex Maddox, capital markets director for Kensington Mortgages (pictured), said that Kensington is having a very busy first quarter of the year with the extension to its warehouse credit line.
“These transactions will support Kensington’s continued expansion of its mortgage range to new products and increased origination volumes in both the buy to let and residential segments.
“Last year, Kensington originated £1.1bn of new loans which represented an increase in volumes of 22 per cent versus the previous year, and now we are well funded to support at least a similar level of growth this year.”
In March, the platform publically placed its latest securitisation transaction called Finsbury Square 2019-1 which raised a further £535m of funding for Kensington, with Citi, BNP, NAB and Deutsche Bank acting as joint lead managers on the transaction.
In January Kensington Mortgages secured almost £1bn in funding, covering residential mortgage lending and originations until 2021.