UK Mortgages Limited

    (A closed-ended investment company incorporated in Guernsey with registration
    number 60440)

    Update on Third Transaction

    3 January 2017

    The Board of UK Mortgages Limited ("UKML") and TwentyFour Asset Management LLP
    ("TwentyFour") are pleased to announce that following extensive work both
    before and during the Christmas period, terms have been agreed and signed for
    the purchase of the existing pool of mortgages discussed in the Company's
    announcement dated 7 December 2016. If completed, this transaction will be
    UKML's third transaction and will deploy the remaining investible capital.

    Given the advanced nature of the negotiations, the expectation is that the
    transaction will be completed early in 2017, following the finalisation of
    certain pre-acquisition diligence, documentation and financing arrangements.

    More details will be made available once the transaction is completed, but the
    expectation is that this transaction will generate a gross IRR for UKML in
    excess of 8%* from the date of purchase.

    Further information

    TwentyFour Asset Management LLP
    Ben Hayward
    Rob Ford
    Douglas Charleston
    Silvia Piva
    020 7015 8900

    Numis Securities Limited, Corporate Broker
    Hugh Jonathan
    Nathan Brown
    020 7260 1000

    * TwentyFour's estimate of the potential total return for this investment is
    based on certain scenario and other assumptions. This and any other references
    herein to potential future returns or distributions are targets or estimates
    and there can be no guarantee or assurance that they will be achieved.