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Belmont Green prices £350m securitisation deal

- Belmont Green has priced its first securitisation since the onset of the COVID-19 crisis
- This move signals a further easing in the capital markets
- The £350m deal puts Belmont Green’s specialist lender Vida Homeloans in a position to return to new lending

Belmont Green, trading as Vida Homeloans, has today announced the pricing of a £350m securitisation deal. This new deal, which has been led by Barclays, JP Morgan, NatWest Markets and Santander, is one of the first since the onset of the COVID-19 crisis and the fifth RMBS transaction for Belmont Green.

Tower Bridge Funding 2020-1 saw significant appetite from prominent ABS investors as well as attracting several high-profile additions to the programme. The trade included a number of innovative structural features, designed to mitigate any investor concerns over the impact of the pandemic.

Pricing on the transaction was strong, with AAA notes settling at 137 basis points over SONIA, comparing very favourably to Belmont Green’s Tower Bridge Funding No.4 securitisation in June 2019 which priced only 10 basis points tighter.

After taking prudent steps to protect customers and employees during the COVID-19 lockdown, this latest securitisation puts specialist lender Vida Homeloans in a position to return to new lending. It also highlights that the securitisation market, on which many UK lenders rely for funding, is beginning to reopen for business.

Anth Mooney, CEO, Belmont Green, said:

“This is one of the first RMBS transactions to complete in Europe since the onset of the COVID-19 crisis and we are delighted to have seen such strong demand from investors. COVID-19 has had an unprecedented impact on the UK mortgage market. The virus and the subsequent lockdown effectively closed the securitisation markets, so our deal can be seen as an important staging post in the recovery of market confidence.”

“Our responsibility as a specialist lender at this time is to help people with what are real life circumstances. Vida Homeloans can now look forward and re-focus on the vital role it plays in supporting Britain’s many underserved borrowers, from key workers to single parents to the self-employed.”
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