Belmont Green Finance Limited, trading as Vida Homeloans, has published its annual report for the financial year ended 31 December 2021.
The company reports statutory profit of £2.7m and basic profit before tax of £4.5m, compared to a loss of £5.8m in 2020.
Net interest income increased to £34.5m from £23.9m in 2020 and net interest margin increased in 2021 to 2.01% from 1.44% in 2020.
The gross yield on the mortgage portfolio improved by 30 basis points to 4.61%, while funding costs improved over the year to 1.94% from 2.22% in 2020 .
Gross new loans increased from £257m in 2020 to £463m in 2021 and net customer loans increased by 10.8% in 2021 to £1.81bn. Regionally, he lent the most in London, at around £760m, and the least in the North East, at around £26m.
BTL loans made up 74% of the loan portfolio, earning the lender just under £1.34bn. The most popular product for BTL is the 60-70% LTV, which saw the lender give just under £586m, or £113m more than its total of £473m in homeowner loans.
He currently holds £1.8bn in debt securities, up from £1.6bn in 2020.
Total share capital, 99.5% of which was provided by Belmont Green private equity investor Pine Brook, was £204m, up £8m from 2020 The company drew £8m from the Pine Brook capital line during the year, compared with £28m in 2020.
Another successful year
Anth Mooney (Photo), Chairman and CEO, said, “This has been another successful year for Belmont Green. As I said last year, our goal for 2021 was to break even; we have achieved this with the company.
“We have made significant progress as a company, focusing operational and technology investments on improving the middleman experience and our operational productivity. Our technology platform and flexible operating model allow us to remain agile and adapt to the environmental challenges posed by the pandemic.
“We continue to provide an essential service to borrowers looking to progress and grow in their lives and are fully committed to growing our strong customer base to become the leading challenger brand in the UK specialist mortgage market.”
Operational progress against sstrategic plan
In terms of operational progress against its strategic plan, the company successfully completed the sixth and seventh securitizations, Tower Bridge Funding 2021-1 PL in March 2021 and Tower Bridge Funding 2021-2 PLC in June 2021.
It also proved its operational resilience and moved its service delivery to “a position of consistency, further strengthening our distribution relationships.”
It strengthened its management team and improved its capital efficiency.
Belmont Green was also named one of the best financial services companies to work for in the latest Best Companies results, showing consistent internal support from employees.
Mooney added: “Going forward, our main business objective is to further strengthen our position in the mortgage market, capitalizing on the growing demand for specialist mortgages in the UK. Another key strategic priority for Belmont Green is to further increase its well-established wholesale funding franchise and ultimately seek authorization from the UK Prudential Regulatory Authority as a depository bank.