Vida Homeloans has completed its second Residential Mortgage-Backed Securities (RMBS) transaction of the year, Tower Bridge Funding 2021-2, raising £300m from a mixed pool of buy-to-let (BTL) and owner-occupied mortgages.
This transaction follows Tower Bridge Funding 2021-1 in March, and was supported by Natwest, Santander, Barclays, and Bank of America.
The transaction attracted strong interest from investors, with the five classes of notes issued being oversubscribed by between 1.9x and 6.8x.
This strong market demand helped the lender achieve its lowest cost funding to date, with the Senior Notes pricing at 0.78% over Sterling Overnight Index Average (SONIA).
Anth Mooney, CEO, Belmont Green which trades as Vida Homeloans, said: “With the COVID-19 crisis increasingly looking like it is receding, people are focusing their attention more on how to navigate the “new normal”, and for many that means reassessing their living circumstances.
“As the mortgage lending specialist for customers with complex mortgage needs, Vida is well placed to support them. This latest RMBS deal and our resulting lower cost of funding allows us to help many more customers and in the longer term, supports our growth ambitions as we work towards seeking authorisation as a bank from the PRA.”
John Rowan, CFO, 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.”