Roma Finance launches bridge to term product
Bridging and development finance lender Roma Finance has launched a bridge to term product which customers can use to exit Roma’s bridging loan once their property project has been completed.
Initially the 5-year buy-to-let mortgage is being offered to existing customers as a way of assessing demand. The term product can be taken either on a repayment or interest-only basis with rates dependent on LTV. Maximum loan size is £500,000 and maximum LTV is 75%.
Scott Marshall, managing director at Roma Finance, said: “This unique product allows our customers to move onto their next project once their “build or renovate to rent” project has been completed and is yet another example of how Roma Finance continues to find new ways to de-risk bridging loans for its customers.
“The key to a successful bridging loan has always been understanding the exit route and since we’re now able to offer this ourselves in a truly innovative way, it provides yet more reasons for brokers to place their bridging business with us.
“We expect demand for this product to be huge which, in turn, should increase our market share of the bridging industry.
“This is arguably the most exciting development in the evolution of Roma Finance since we secured our first funding line with RBS just after the Brexit referendum in July 2016.
“Furthermore, over the past 18 months we have completed four other funding lines, made our lending processes perhaps the most efficient in the market, invested significantly in new people and advanced technology becoming, for example, the first bridging lender to introduce Open Banking.
“This continues to be an exciting time for everyone involved with Roma Finance.”
The scheme mitigates valuation risk by using the same surveyor who valued the property before the works commenced. The increase in value of the completed property allows Roma’s customer to take equity out of the property which could, for example, be used to help fund their next bridging project.
At the time of refinancing from bridge to term, the property does not need to be fully let, as the borrower’s other income will be taken into account.
Roma will also offer its customers dual representation for the refinance, meaning the process of moving from bridge to term should only take a few days.