The parent of Vida Homeloans has agreed its sixth residential mortgage-backed securities deal, raising £350m from a pool of buy to let and owner-occupied mortgages.

Specialist lender Belmont Green Finance said the transaction, called Tower Bridge Funding 2021-1, is backed by a range of banks including Barclays, JP Morgan and Santander.

It added the deal enjoyed “significant appetite from investors” and was oversubscribed by between 1.5 times and 3.8 times across its tranches, bringing in several new investors.

Belmont Green said this demand led to its lowest cost of funding to date, with the senior notes pricing at 90 basis points over the sterling overnight index average.

Belmont Green chief executive Anth Mooney says: “The Covid-19 crisis has dramatically altered the financial lives of families and individuals across the UK.

“From those looking to take their first steps on the housing ladder through to experienced homeowners reassessing how they want to live their lives, there are now many more borrowers than ever who are finding that their circumstances simply don’t fit the traditional credit-scoring models of the big high street lenders.

“This latest residential mortgage-backed securities 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.”

Belmont Green chief financial officer John Rowan adds: “Our latest securitisation transaction is clear evidence that investors are recognising the quality of the Vida mortgage platform and the potential for the specialist lending sector to grow in the months and years 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.”