Belmont Green prices second securitisation deal this year

Belmont Green Finance Limited, trading as Vida Homeloans, has concluded its second residential mortgage-backed securities (RMBS) transaction of 2021, raising £300m from a mixed pool of BTL and owner-occupied mortgages.

The transaction, Tower Bridge Funding 2021-2, follows the success of Tower Bridge Funding 2021-1 in March, and was supported by Natwest, Santander, Barclays and Bank of America. 

The five classes of notes issued were oversubscribed by between 1.9x and 6.8x, and Belmont Green has seen a number of new investors to the programme. 

This demand helped has helped the lender achieve its lowest cost funding to date, with the senior notes pricing at 78 basis points over Sterling Overnight Index Average (SONIA).

“With the Covid-19 crisis increasingly looking like it is receding, people are focusing their attention more on how to navigate the ‘new normal’ and, for many, that means reassessing their living circumstances,” said Anth Mooney, CEO at Belmont Green.

“As the mortgage lending specialist for customers with complex mortgage needs, Vida is well placed to support them. 

“This latest RMBS deal and our resulting lower cost of funding allows us to help many more customers and, in the longer term, supports our growth ambitions as we work towards seeking authorisation as a bank from the PRA.”  

John Rowan, CFO at Belmont Green, added: “The pricing of and strong support for our latest securitisation transaction clearly indicates that investors are recognising our strong potential for growth. 

“We are continuing to broaden our investor base, and it is encouraging to see strong demand across all the notes with improved pricing as more investors gain confidence in our track record.”

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