Vida Homeloans’ parent company has completed its sixth residential mortgage-backed securities deal, raising £350m from a pool of buy-to-let and owner-occupied mortgages.
Specialist lender Belmont Green Finance said the transaction, called Tower Bridge Funding 2021-1, is backed by a range of banks including Barclays, JP Morgan and Santander.
He added that the deal had “significant investor appetite” and was between 1.5x and 3.8x oversubscribed across its tranches, attracting several new investors.
Belmont Green said the request led to its lowest funding cost yet, with the senior notes priced 90 basis points above the pound’s overnight index average. sterling.
Belmont Green chief executive Anth Mooney said: “The Covid-19 crisis has dramatically altered the financial lives of families and individuals across the UK.
“From those looking to take their first steps on the housing ladder to experienced homeowners reassessing how they want to live their lives, there are now many more borrowers than ever who are finding that their circumstances simply don’t fit. not the traditional credit rating models of high street lenders.
“This latest residential mortgage-backed securities deal will allow us to help many more customers as the UK seeks to return to some sort of normality in the months ahead.”
Belmont Green’s Chief Financial Officer, John Rowan, added: “Our latest securitization transaction is clear evidence that investors recognize the quality of the Vida mortgage platform and the growth potential of the specialty lending industry in the months and years to come. to come.
“We knew there was strong investor support following our securitization last summer and we were delighted with the reception this transaction received. Our investor base continues to grow and we appreciate this support.