Oat Hill No. 2 Securitisation Launched and Priced

UK Mortgages Ltd - Oat Hill No. 2 Securitisation Launched and Priced

PR Newswire

London, July 14

UK Mortgages Ltd: Oat Hill No. 2 Securitisation Launched and Priced

THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION DIRECTLY OR INDIRECTLY IN OR INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN.

14th July 2020

UK MORTGAGES LIMITED(a closed-ended investment company incorporated in Guernsey with registration number 60440)

LEI 549300388LT7VTHCIT59

Oat Hill No. 2 Securitisation Launched and Priced

The Board of UK Mortgages Limited (“UKML”, or the “Company”) and TwentyFour Asset Management LLP (“TwentyFour”) are pleased to announce that following the announcement on Wednesday 8th July 2020, that the Company had mandated banks and announced the public marketing of the Oat Hill No.2 securitisation, the transaction was successfully launched and priced late on Friday afternoon 10th July 2020.

This transaction refinances the previous Oat Hill No.1 deal that had originally been intended to be completed in May 2020, but was delayed due to the market disruption ensuing from the Covid-19 outbreak. TwentyFour and the Company are extremely pleased that they are able to return to the pre-Covid-19 strategy at the earliest opportunity.

This transaction will also allow the Company to return to its previously stated proposal of using excess capital to enable share buybacks whilst the Company’s share price continues to trade at a discount to the NAV.

However, investors should note that the settlement date for this transaction is timed to coincide with the next interest payment date of the previous Oat Hill No.1 transaction at the end of August 2020, and so any capital released will not be available until after then.

As previously stated, whilst securitisation spreads have retraced to such an extent that a full securitisation became possible, they have not recovered to the levels seen in February, prior to the Covid-19 outbreak, and therefore whilst this transaction is expected to release a significant amount of capital, that release will now most likely be around the lower of the previously stated £30m - £50m range rather than the upper end as indicated in February. In the immediate future, the Company and TwentyFour will be revising cashflow forecasts, which will take into account financing the Company’s contractual lending commitments, along with the effects that income deferment from the government’s payment holiday scheme and its subsequent extension until at least October this year might have on future capital availability, as well as reviewing the previously reduced dividend.

Once this is completed, a further announcement will be made by the Company and TwentyFour will host a video update or webinar to further inform investors on timing and quantum.

TwentyFour Asset Management LLP

Rob FordSilvia Piva020 7015 8900

Numis Securities Limited, Corporate BrokerNathan BrownHugh Jonathan020 7260 1000

Important notice

This announcement has been prepared for information purposes only, it is not a prospectus.

The distribution of this announcement in certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes are required by the UKML, TwentyFour and Numis to inform themselves about, and to observe, such restrictions.

Recipients of this announcement who are considering acquiring New Shares in UKML are reminded that any such acquisition must be made only on the basis of the information contained in the Prospectus and any supplementary prospectus(es) thereto which may be different from the information contained in this announcement. This announcement does not constitute or form part of and may not be construed as an offer to sell, or an invitation to purchase, investments of any description, nor as a recommendation regarding the possible offering or the provision of investment advice by any party. No information in this announcement should be construed as providing financial, investment or other professional advice and each prospective investor should consult its own legal, business, tax and other advisers in evaluating any investment opportunity. In particular, an investment in UKML involves a high degree of risk and prospective investors should read the section in the Prospectus entitled "Risk Factors" for further information.