In its latest annual report, Vida Homeloans said the growth was due to “further improvements to our mortgage proposition and more competitive pricing due to a reduction in relative funding costs”.
Within the new lending figure, around 63% was attributed to buy-to-let (BTL) business and the remaining 37% was residential owner-occupied mortgages.
Loan book growth was estimated at £154m during the period, with the total loan book climbing to £1.9bn.
The number of active mortgage accounts stood at 9,400, the report said.
Vida Homeloans said mortgage applications in the year grew by 67% to £1.2bn, meaning the firm finished the year with a “strong pipeline of new business”.
Instilling mortgage confidence in the growing self-employed population
Post Views:
Sponsored by Newcastle for Intermediaries
The company added that by taking a “proactive approach” to retention, around 62% of customers were taking a new deal with the lender when it came to renewal, and internal mortgage transfers totalled £239m in 2024.
The internal mortgage transfer figure is a fall of 21% year-on-year.
Vida Homeloans pointed to the launch of its 97% loan-to-value (LTV) mortgage to support first-time buyers as an example of its “growth agenda” and said it had “plans to expand the range further in the months ahead, materially increasing [our] addressable market by serving new specialist customer niches”.
The report noted that the total balances at or above three months in arrears were 2.4%, a rise from 2.2% at year end in 2023.
Vida Homeloans said that in the first half of the year, the rising cost of living and borrowing “continued to feed through to a small group of borrowers”, but this had reduced during the year due to lower inflation and lower interest rates.
The company’s statutory profit before tax came to £3.6m, which is down from £4.8m in 2023.
‘Diversified funding model’ key for Vida Homeloans’ growth
The firm added that it had garnered around £173m in retail deposits since it received its banking licence in November 2024 and year end, establishing a “robust platform for future growth”.
In an update in May, the company said it had reached a “significant milestone” of £1bn in deposits since its banking authorisation.
Vida Homeloans said securitisation still played a “key role” in its funding strategy, with three securitisations during the year raising around £850m.
“These transactions, executed under challenging market conditions, demonstrated significant investor demand and secured favourable pricing. With the backing of committed investors, the business retains the flexibility to issue debt and securitise selected mortgage assets, optimising both funding and capital,” the report said.
Vida Homeloans said the “diversified funding model” ensures “resilience and adaptability” as it continues to scale.
“Retail deposits will grow in prominence as a stable and scalable funding source, while RMBS investors will remain an important part of the strategy, providing flexibility and support for continued growth in 2025 and beyond,” the company said.
Anth Mooney (pictured), Vida Homeloans’ CEO, said: “2024 was a milestone year for Vida, marking our transition from a wholesale funded mortgage lender to becoming a fully authorised specialist mortgage bank.
“Receiving our banking licence represents the culmination of many months of preparation, opening the door to a more diversified funding model with the launch of our retail deposit business.
“This strategic transformation provides a very stable platform from which to scale sustainably over the coming years, strengthening our competitive position so that we can grow our asset base whilst delivering enhanced value to our shareholders, customers and intermediary partners.”
