Roma Finance, the Manchester-based bridging and development finance lender, has launched a 5-year mortgage to allow property investors to purchase or refinance investment property or to exit a bridging loan.
Roma have institutional funding for this medium term mortgage product that landlords can use to acquire buy to let and HMO property or exit a bridging loan, even if they aren’t existing Roma customers.
The mortgage has a variable rate from 4.24%pa plus bank base rate, can be offered on an interest only or repayment basis for loans up to £500,000 with a maximum LTV of 75%.
At the time of taking out the mortgage, the property does not need to be fully let, as the borrower’s other income will be taken into account.
Any increase in value of a recently completed property allows investors to take equity out of the property which could, for example, be used to help fund their next refurbishment or renovation project, which Roma Finance could finance.
For existing Roma customers, the scheme mitigates valuation risk by using the same surveyor who valued the property before the works commenced, it provides a suitable exit from the bridge and
also offers its customers dual representation for the refinance, meaning the process of moving from bridge to term should only take a few days.
Scott Marshall, Managing Director at Roma Finance, said: “Extending the reach of this competitively priced mortgage to more types of investment property for purchase, refinance or as an exit strategy for a bridging loan will provide landlords with another route to financing their income-generating property.
“This is yet another example of how Roma Finance continues to develop exciting new products for the market and we expect this mortgage to be very popular with property professionals.”