The product mix for Tower Bridge Funding 2021-2 consists of buy-to-let and owner-occupied mortgages and is the seventh residential mortgage backed securitisation (RMBS) transaction for the specialist lender.
According to Belmont Green, the transaction attracted “strong interest” from investors, with the five classes of notes issued oversubscribed and new investors joining the programme.
Belmont Green said that due to the strong demand that it had achieved its lowest cost funding to date with senior notes selling at 78 basis points over basis points over Sterling Overnight Index Average (SONIA).
Belmont Green’s chief executive officer Ant Mooney (pictured) said that this latest deal would allow it to help more customers and in the long term would support its growth ambitions, which include getting bank authorisation from the Prudential Regulation Authority.
Belmont Green’s chief financial officer John Rowan 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.”
The lender completed an RMBS in March, its first since the start of the Covid-19 pandemic and raised £350m. The deal was led by Barclays, JP Morgan, NatWest Markets and Santander.
At the time it said that the transaction would quicken the return of Vida Homeloans to the market after it had to cease lending during the pandemic.