...Strengths Concerns and mitigating factors The historical performance of the lender's mortgage book has proven relatively strong to date, with lower arrears than our BTL index. Fleet Mortgages has not had to repossess any property to date, and a receiver of rent has only ever been appointed for one property. Given the professional nature of the borrowers that Fleet Mortgages lends to, the originator has an exposure to houses in multiple occupation (HMOs; 23.2% of the pool) and other assets that may have specialist appeal, such as multi-unit blocks. Fleet Mortgages' valuation process for these assets is appropriate, in our view, and all HMO valuations are performed on a "brick-and-mortar" basis rather than on an investment valuation basis, which we believe to be more conservative. The lender is a nonbank specialist lender. Even though it is not specifically bound by the Prudential Regulatory Authority's (PRA's) underwriting guidance on lending, it adheres to its principles. The transaction...
