Vida Homeloans completes £350m securitisation
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.
Clydesdale adds 90 per cent LTV exclusives and Vida slashes rates up to 95bps
The 90 per cent LTV exclusives are applied to two and five-year fixes with rates starting from 2.99 per cent. The deals have a £1,999 fee and come with a free valuation.
Clydesdale has also reduced rates on its professional and newly-qualified professional range at 85 per cent and 90 per cent LTV by up to 0.12 per cent, with these products now starting from 2.76 per cent.
For mainstream borrowing, the 85 per cent LTV two and five-year fixed rates have been reduced by up to 0.14 per cent, the 80 per cent LTV full capital and interest five-year fixes trimmed by up to 0.10 per cent and the 75 per cent LTV two and five-year fixes reduced by up to 0.12 per cent.
Vida slashes rates
Vida Homeloans has cut interest rates on its residential mortgage products by up to 95 basis points (bps), with cuts to rates on its specialist buy-to-let offering as well.
Reductions apply to the Vida 1, 2 and 3 core residential purchase and remortgage ranges and the lender said the cuts made its “prices some of the most competitive in the specialist market”.
The biggest cut of 95bps has been made to its Vida 1 five-year fix at 80 per cent loan to value (LTV) which now has a rate of 3.94 per cent.
The Vida 1 residential range also saw several other significant rate cuts, including the 75 per cent LTV two-year and five-year deals cut by 74bps and 65bps respectively to 3.18 per cent and 3.54 per cent.
Other changes to Vida’s residential offering include rates on all products in the Vida 2 range cut by up to 40bps and rates on all products in the Vida 3 range cut by up to 25bps.
Its Vida 1 buy-to-let houses in multiple occupation and multi-unit freehold block (HMO/MUB) range has also seen rates trimmed by 20bps at both 70 per cent LTV and 75 per cent LTV.
Earlier this week, Vida announced the managing director of mortgages Louisa Sedgwick was leaving with Richard Tugwell appointed as director of mortgage distribution.
Commenting on the rate cuts, Tugwell said: “A strong specialist lending sector that offers competitive rates and innovative solutions has never been more important and these rate cuts are just one step towards achieving this.
“Vida is wholly committed to making continuous refinements to its products and services, so that intermediaries and customers have access to the financial solutions they need to achieve home ownership.”
Vida CEO Anth Mooney added that Vida had learned a lot over the past 12 months.
“We now have the opportunity to improve our competitive position and focus on supporting those underserved borrowers whose circumstances have been exacerbated by the Covid-19 pandemic,” he said.
“We have invested in new processes, streamlined the way we underwrite, reduced the documentation requirements for intermediaries and recruited new experienced underwriting resources to ensure that our new business capacity is significantly expanded.”
Newcastle Building Society
Meanwhile, Newcastle Building Society has added a pair of 85 per cent LTV products for first-time buyers, re-mortgagers and home movers.
The £999 fee version is available at 2.7 per cent with the fee-free deal at 2.8 per cent – both have free valuation and include two years early repayment charges.
John Truswell, head of intermediary mortgages at Newcastle Building Society, said: “We’re always looking at the changing needs of the market and have evolved our proposition to suit brokers and their clients.
“These new 85 per cent products will support a variety of borrowers including first-time buyers, home movers and existing home owners looking to remortgage.”
Louisa Sedgwick leaves Vida as Richard Tugwell joins lender
Richard Tugwell will be taking up the position of director of mortgage distribution, Vida added.
Sedgwick (pictured) has been at the lender for almost five years, initially joining as director of sales – mortgages in the summer of 2016.
She was promoted to managing director of mortgages at the start of last year and has seen the lender through the Covid-19 pandemic.
At the same time she became the first woman to be elected as chairman of the Intermediary Mortgage Lenders Association (IMLA).
Sedgwick previously spent two and a half years at Leeds Building Society after nearly two decades with Bradford and Bingley.
Tugwell joins Vida from Together where he spent almost four years as group intermediary relationship director.
He has more than 30 years’ experience in the UK intermediary market and was formerly director of intermediaries at Virgin Money and an ex-director of IMLA.
Vida said Tugwell would be joining as it looks to accelerate growth plans with a series of significant product and service improvements over the next few months.
Vida CEO Anth Mooney said: “I’m thrilled to announce that Richard will be joining us for the next phase of Vida’s journey.
“We are investing to improve our products, pricing and service levels to take advantage of the growing specialist market post-Covid and, having worked closely with Richard for over 20 years, I know that there is no-one better equipped to help us deliver our growth ambitions.
“I would like to take this opportunity to thank Louisa for her contribution to Vida. She has been an important part of the Vida story and we wish her well for the future.”
Tugwell added: “The specialist lending sector is an important and growing part of the wider mortgage market.
“Vida has ambitious plans for the future, and I am delighted to be coming on board for the next exciting stage in its journey. I look forward to working with Anth again and with Vida’s highly experienced leadership team and can’t wait to get involved.”
Mortgage Solutions has contacted Sedgwick.
TSB and Vida slash buy-to-let rates
TSB is making the changes to its purchase and remortgage deals with £1,995 and £995 fee options.
The two-year fixes in its 60 per cent and 75 per cent loan to value (LTV) tiers have been cut by 30bps.
For example, the 60 per cent LTV deal with a £1,995 fee is now 1.49 per cent, while the £995 fee product is now at 1.69 per cent. The 75 per cent LTV versions are at 1.69 per cent and 1.89 per cent respectively.
In it’s five-year fixes, the 60 per cent LTV products have been reduced by up to 10bps, to 1.74 per cent and 1.89 per cent respectively.
TSB has also made some rate changes to its product transfer range.
Meanwhile, Vida has reduced its Vida 1 range of buy-to-let products by up to 50bps.
The two-year fixes are now at 2.99 per cent for 70 per cent LTV and 3.14 per cent for 75 per cent LTV.
And the five-year fixes are 3.39 per cent and 3.49 per cent at 70 per cent and 75 per cent LTV respectively.
The products are available for purchase and remortgage and on single family dwellings, but not for expats.
Vida has continued to complete purchases on its buy-to-let range but has paused purchases applications for residential deals to help service cases before the stamp duty holiday deadline of 31 March.
Vida restricts residential business to remortgage only and withdraws more products
From 25 November the lender is restricting all residential deals to remortgage only.
It is also withdrawing all Help to Buy, First Home Fund and Right to Buy products.
The minimum loan size for all BTL and residential cases is being further increased to 150,000.
And all BTL mortgage at 80 per cent loan to value are being withdrawn.
This is the third such move Vida has made since re-entering in August. Earlier this month it withdrew some Help to Buy products, increased various rates and increased the minimum loan value to £100,000.
New submissions and pipeline cases
Brokers must submit decisions in principle under the expiring products and criteria by 8pm on 24 November. After this a product from the new range must be selected to proceed.
For any new or pipeline cases potentially impacted by these changes, all mandatory documents must be uploaded with fees paid and progressed to Application Received stage by 8pm on Thursday 26 November.
A spokesperson from Vida said: “Vida has received an incredibly positive response from intermediary partners since returning to lending, and we have seen an unprecedented number of applications.
“Despite making a number of product changes during October and November, applications continue to spike. Protecting service levels remains a priority for us and we have therefore taken decisive action by making a further number of temporary changes to our proposition.
“The impact of the crisis resulting in a higher demand for specialist lending, along with the impending deadline of the Stamp Duty Land Tax holiday and Help to Buy scheme means this is an incredibly busy time for the mortgage market.
“At Vida, we are striving to provide quick outcomes for our customers, while maintaining our commitment to lending responsibly as we continue to assess each application case by case.”
Vida withdraws products and increases minimum loan value and rates
The lender said it was making the moves to protect service levels for intermediaries who have already submitted cases to it.
Vida previously reduced the range of mortgage available at the start of October after it re-entered the market in August.
In its latest changes, the minimum loan size has been increased to £100,000 for all remaining products, with Help to Buy products on adverse tiers Vida 2 to Vida 5 being removed.
It has also increased interest rates on residential two-year deals at 70 per cent and 75 per cent loan to value (LTV) products and five-year 80 per cent LTV products
The two-year rates start at 3.59 per cent for the Vida 1 range at 70 per cent LTV and rise to 5.69 per cent for the Vida 5 range at 75 per cent LTV.
The five-year versions at 80 per cent LTV start at 4.89 per cent and rise to 5.59 per cent for Vida 4.
A Vida spokesman said: “Vida has received an incredibly positive response from intermediary partners since returning to lending.
“We are seeing unprecedented application volumes, and as a result we have now made several temporary changes to our product range and criteria.
“This is to protect service levels for intermediaries who have already submitted a case to us. We are committed to returning to offering a broader product range as soon as we can.”
Vida Homeloans relaunches with mortgages up to 85 per cent LTV
Vida was forced to halt lending in March when the coronavirus lockdown was introduced and capital markets closed-up, but after completing a £350m securitisation in July it has been able to relaunch.
Mortgage Solutions understands Vida will be expanding its proposition in the next few weeks as it rolls out to the market again.
As part of its return the lender has introduced specific criteria to tackle the new economic environment, including payment holidays, furlough and bounce back loans.
Where payment holidays are concerned, for residential and buy-to-let, applicants must have finished the payment holiday for secured and unsecured loans, with evidence of at least one payment made on their most recent mortgage or bank statement.
Residential applications from currently furloughed borrowers will be accepted provided they are returning to work within the four weeks following the application date.
However an offer will not be issued until they have returned to work and non-guaranteed income will not be included.
For borrowers who have already returned from furlough, an employer form is required along with further evidence.
Self-employed borrowers will be considered, although additional documentation and information will be required, and those utilising the government’s Self-Employment Income Support Scheme (SEISS) must be back to full-time work.
For landlord borrowers who have been furloughed, in all cases Vida will require the latest month’s bank statement, showing sufficient funds to cover three months’ payments or regular rental income from the portfolio.
First-time landlords and top-slicing are not permitted where the applicant is currently or was previously furloughed.
The same requirements and restrictions also apply to self-employed applicants.
Bounce back loans and Coronavirus business interruption loans cannot be used as part of the applicant’s income or to fund any part of the deposit.
Vida will not accept applications where these types of loans are secured against the security address. It will also require information related to the loan, for example the loan amount, the monthly payment and reason for the loan.
Regular non-guaranteed income is not acceptable for top-slicing or first-time buyer’s buy-to-let affordability assessment.
Limited company lending is open to special purpose vehicles, but not trading limited companies.
The highly active market driven by the stamp duty cut combined with social distancing restrictions for employees has meant many lenders have been hit by challenges maintaining services levels and have limited supply.
Louisa Sedgwick, managing director mortgages at Vida, told Mortgage Solutions that she was aware of the situation the lender was relaunching into.
“We will of course be monitoring applications daily. Because we don’t have a pipeline of applications yet, we can actively manage the volumes,” she said.
Sedgwick continued: “Our intention at Vida has always been to get back to lending. We want to support Britain’s underserved borrowers and we plan to return with a renewed ambition to change mortgages for good.
“As we prepare to return to the mortgage market, we’ve made our standard mortgage range of products up to 85 per cent LTV available to intermediaries through sourcing systems.
“We will be testing everything over the next week to make sure we can deliver the best possible service to our intermediary partners.
“However, we’re at the very start of a new journey for Vida and we have some exciting announcements in the pipeline as we invest in our proposition to innovate for intermediaries and our customers.
“We’ll have more to announce on these plans very soon,” she added.
Vida improves new build offer and remortgage process
The lender is allowing conveyancers on its panel to use its No Search Indemnity insurance, which extends to its buy-to-let products for portfolio and houses in multiple occupation (HMO) landlords.
The move is designed for a faster remortgage process and should also mean lower costs for borrowers, Vida said.
At the same time, Vida has extended its new build mortgage offer period from four to six months and removed the need for a re-inspection to be carried out prior to completion.
If the build overruns, offers can be extended by up to a further six months.
Vida also has a dedicated underwriting team in Yorkshire prioritising new build applications, the lender said.
Louisa Sedgwick, director of sales – mortgages at Vida Homeloans (pictured), said: “Vida Homeloans is always keen to offer the best value to customers, and this is shown through improvements made to our new build proposition and introduction of a speedier remortgage process.
“Our aim at Vida is to ensure that we provide the best products available to the specialist customer, while matching the value added services that they can get on the high street.”