The company reports statutory profit of £2.7m and core profit before tax of £4.5m, up from a £5.8m loss in 2020.
Net interest income increased to £34.5m from £23.9m in 2020 and the net interest margin increased in 2021 to 2.01 per cent from 1.44 per cent in 2020.
Gross yield on the mortgage book improved by 30 basis points to 4.61 per cent, while funding costs improved during the year, at 1.94 per cent compared to 2.22 per cent in 2020.
Gross new lending was up from £257m in 2020 to £463m in 2021 and net loans to customers grew by 10.8 per cent in 2021 to £1.81bn. Regionally it lent the most to London, at around £760m, and the least in the North East, at approximately £26m.
BTL loans made up 74 per cent of the loan book, netting the lender just under £1.34bn. The most popular product for BTL is the 60 to 70 per cent LTV, which saw the lender give out just shy of £586m – £113m more than its £473m total in owner-occupied lending.
It currently holds £1.8bn in debt securities, versus £1.6bn in 2020.
Total share capital, of which 99.5 per cent has been provided by Belmont Green’s private equity investor, Pine Brook, stood at £204m, up £8m on 2020. The business drew down £8m from Pine Brook’s line of equity during the year, compared with £28m in 2020.
Another successful year
Anth Mooney (pictured), Chief Executive Officer, said: “It has been another successful year for Belmont Green. As I said last year our 2021 objective was to break even; we have achieved that with the company.
“We have made significant progress as a business, focusing operational and technology investment on enhancing the intermediary experience and our operational productivity. Our technology platform and flexible operating model allow us to remain nimble and adapt to the environmental challenges presented by the pandemic.
“We continue to provide a critical service for borrowers looking to progress and grow in their lives and are fully committed to building out from our strong customer base to become the leading challenger brand in the UK specialist mortgage market.”
Operational progress against strategic plan
In terms of operational progress against its strategic plan, the firm successfully completed sixth and seventh securitisations, Tower Bridge Funding 2021-1 PL in March 2021 and Tower Bridge Funding 2021-2 PLC in June 2021.
It also proved its operational resilience and moved its service delivery to “a position of consistency, further solidifying our distribution relationships.”
It has strengthened its senior management group and improved its capital efficiency.
Belmont Green was also named one of the best financial services companies to work for in the latest Best Companies results, demonstrating consistent internal support from employees.
Mooney added: “Going forward, our key business focus is to further scale our position in the mortgage market, capitalising on the growing demand for specialist mortgage loans in the UK. Another core strategic priority for Belmont Green is to further augment its well established wholesale funding franchise, and in time seek authorisation by the UK Prudential Regulatory Authority as a deposit taking bank.”