Belmont Green, the parent company of Vida Homeloans, has priced its first securitisation since the Covid-19 pandemic hit UK shores.

The £350m deal, Tower Bridge Funding 2020-1, saw AAA notes settling at 137 basis points above SONIA, which the firm says priced only 10 points tighter than the Tower Bridge Funding No. 4, back in June last year.

It adds that as a consequence, Vida Homeloans will be in a position to return to new lending and that the deal demonstrates that capital markets are easing.

Belmont Green chief executive Anth Mooney says: “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.”