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Belmont Green raises £400m in first securitisation of the year

  • 25/01/2022
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Belmont Green raises £400m in first securitisation of the year
Belmont Green, the parent company of Vida Homeloans, has raised £400m in its first securitisation deal of the year.

The transaction, named Tower Bridge Funding 2021-2, is a mixed pool of buy-to-let and owner-occupied mortgages and was supported by Santander, Barclays and Bank of America.

This comes off the back of two securitisations in 2021, with the first one raising £350m, and the second one raising £300m.

Belmont Green said it attracted “strong investor interest” and the five classes of notes issued attracted over £1bn of demand, including some new investors.

It said it achieved its lowest cost funding to date, with senior notes priced at 72 basis points over Sterling Overnight Index Average.

It added that it had become the first UK issuer to share the new industry standard Environmental, Social and Governance (ESG) questionnaire, and there was an additional ESG presentation and energy performance certification disclosure on the mortgage portfolio.

Anth Mooney (pictured), chief executive of Belmont Green, said: “The specialist mortgage market continues to develop as we emerge from Covid-19, and customers subsequently reassess their living circumstances.

“This latest RMBS deal and our resulting lower cost of funding allows Vida to help more customers and in the longer term, supports our growth ambitions as we work towards seeking authorisation as a bank from the PRA. We welcome the increasing focus from investors on ESG matters, as they are a fundamental consideration in the way we run and grow the business.”

John Rowan, chief financial officer of Belmont Green, added: “The pricing of and strong support for our latest securitisation transaction clearly demonstrates investors’ recognition of the strength of our mortgage book and business.

“We are happy to welcome more investors to the platform and are encouraged by the strong demand to invest in Belmont Green transactions.”

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