BlueZest is a new lender on the UK market, financing mortgages for buy to let investors and property developers.
How are they going to finance the mortgages they advance to borrowers ?
The issuance of a bond to raise the funds:-
The BlueZest Secured Retail Bond PLC
On the 22nd of November 2017 BlueZest Secured Retail Bond PLC, a wholly-owned subsidiary of BlueZest Funding Limited, established a £1.5bn secured retail bond programme
Thus raising £1.5b in funding from this bond, secured against the properties they lend the cash from the bond programme.
Interest rate: 5.25% Per Annum
So, raising £1,500,000,000 = £1.5 Billion: How many mortgages could this be ?
if we assume, that each mortgage is £250,000 that BlueZest advance on a property worth £300,000 so the borrow has to put down £50,000 cash deposit, in my rough example:
£1,500,000,000 (funds from the bond issue) / £250,000 (each mortgage) = 6,000 loans funded.