U.K. buy-to-let lender Paragon Mortgages is planning its second securitization of this year, a £350 million ($598 million) transaction backed by a portfolio of buy-to-let mortgages.

Moody's Investors Service has assigned the class A notes issued by Paragon Mortgages (No. 20) a preliminary rating of ‘Aaa’ and the class B notes a preliminary rating of ‘Aa1’. The capital structure also features a tranche of class D notes that have not been rated by Moody’s. All of the notes are due in 2041.

The structure allows additional loans to be added to the pool before Oct.  31, 2014. According to the Moody’s presale report, prefunding will equal 18.6% of the pool.  That is greater than the prefunded portion of the previous deal, completed in February, which allowed up to 5.3% of the mortgage loans to be added to pool after it is closed.

Another 32.4% of the loans included in the pool backing the lastest deal were repurchased from the issuer’s Paragon Mortgages No. 16 securitization.

Llyods Bank, Macquarie Bank (London Branch) and Morgan Stanley are joint lead managers on the deal.

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