Belmont Green Finance, trading as Vida Homeloans, has announced its sixth Residential Mortgage-Backed Securities (RMBS) transaction, Tower Bridge Funding 2021-1.
The deal is raising £350m from a mixed pool of buy-to-let and owner-occupied mortgages and has been supported by Barclays, J.P. Morgan and Santander.
The transaction saw significant appetite from investors with the deal being oversubscribed by between 1.5x and 3.8x across the tranches, with several investors new to the programme. This strong market demand helped Belmont Green to achieve its lowest cost of funding to date, with the Senior Notes pricing at 90 basis points over Sterling Overnight Index Average (SONIA).
Anth Mooney, CEO, Belmont Green, 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 through 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 the traditional credit-scoring models of the big high street lenders.
“This latest RMBS deal will allow us to help many more customers as the UK looks to get back to some sort of normality in the months ahead.”
John Rowan, CFO, added: “Our latest securitisation transaction is clear evidence that investors are recognising the quality of the Vida mortgage platform and the potential for the specialist lending sector to grow in the months and years ahead.
“We knew there was strong investor support after our securitisation last summer and have been delighted with the reception for this deal. Our investor base continues to grow, and we appreciate that support.”
