Together’s Latest Money Magic: Securitisation, Warehouses, and Why It Matters

If you’ve ever wondered how non-bank lenders like Together manage to dish out hefty loans without a high-street banking licence, buckle up—we’re diving into the financial wizardry behind it.

Who (or What) Is Together?

Together is a UK-based lender that’s been handing out cash since 1974, specialising in property finance. Think mortgages, bridging loans, and other forms of lending that the big banks often turn their noses up at. If you’re self-employed, have a quirky income stream, or a few historical financial hiccups, Together might be one of the few places willing to hear you out.

Where Do They Get Their Money?

Contrary to popular belief, lenders don’t just have a bottomless pit of money waiting to be distributed like Monopoly cash. They rely on something called securitisation—which is a fancy way of saying they bundle up loans, sell them to investors, and use that cash to lend out again.

Another key tool in their kit is warehouse funding. No, not a giant Amazon-style facility packed with pallets of fivers, but structured financing agreements where banks provide a revolving line of credit secured against existing loans. It’s a bit like having a giant, constantly replenishing overdraft (but with more spreadsheets).

What’s the Big News?

Together just announced a major reshuffle of its funding setup. Previously, they had a £1.25 billion “Charles Street” securitisation programme, but now they’ve split it into two separate funding warehouses:

• Kingsway – £1.2 billion to support first charge residential mortgage-backed securities (essentially standard mortgages).
• Wilmslow – £387 million to back second charge mortgages (the riskier, higher-interest stuff).

This tweak isn’t just for show—it makes their funding model more streamlined, extends maturity dates (so they don’t have to scramble for cash too soon), and brings in four new banks to share the fun.

Why Is It Private?

These funding arrangements aren’t for your average retail investor. Instead, they’re done behind closed doors with institutional players—banks, hedge funds, and other serious money people. Keeping it private allows for more flexibility, better deals, and fewer regulatory headaches.

What’s the Takeaway?

If you run (or dream of running) a lending business, this is proof that securitisation and warehouse facilities aren’t just for the financial elite. The same strategies are available to any lender looking to scale – whether you’re funding mortgages, car loans, or even a quirky niche like classic vinyl collections.

Money, after all, is all about structuring it smartly.