The funding will help drive the lending growth of Vida Homeloans
Belmont Green, the parent company of Vida Homeloans, has announced its first residential mortgage-backed security (RMBS) for 2023, raising £350 million to help drive lending growth across the specialist residential and buy-to-let markets.
The deal, named Tower Bridge Funding 2023-1, is the ninth RMBS transaction from Belmont Green, which lends to customers via its specialist mortgage lending brand, Vida Homeloans. It was supported by Bank of America, Barclays, Macquarie Group, NatWest and Santander; and also attracted over £900 million of demand from UK and international investors, with notes being oversubscribed by between 2.5 and 6.1 times across the tranches on offer.
The company said the transaction, together with an expanded £900 million of warehouse facilities, further strengthened Vida Homeloans funding capacity in support of its ambitious growth plans.
“We were very pleased with the investor reception for what was again the first specialist mortgage deal of the new year,” John Rowan, chief financial officer at Belmont Green, stated in a post announcing the development. “The pricing of the transaction and the demand from investors is a testament to the strength of our portfolio, their confidence in our platform and the wider specialist lending sector in the UK.”
Anth Mooney (pictured), chief executive at Belmont Green, added that they transformed their intermediary service delivery in 2022, and this transaction provided them with deeper funding capacity that will allow them to support the specialist lending market.
“Together with our strong service levels and excellent feedback from our intermediary partners, we go into the year with continued confidence as we move forward on our journey to become a bank,” Mooney said.
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