The Tower Bridge Funding 2021-1 batch of owner occupied and buy-to-let mortgages is the sixth residential mortgage-backed securitisation (RMBS) listed by the firm.
Belmont Green said the transaction was oversubscribed by between 1.5 times and 3.8 times 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),” it said.
The deal was supported by Barclays, J.P. Morgan and Santander.
Anth Mooney, CEO of Belmont Green, (pictured) noted the Covid-19 crisis had dramatically altered the financial lives of families and individuals across the UK and there were now many more borrowers finding their circumstances do not fit traditional credit-scoring models.
“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,” he said.
John Rowan, CFO, added the transaction provided clear evidence that investors were recognising the potential for the specialist lending sector to grow in the months 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,” he added.