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Roma Finance unveils bridge-to-term product

  • 02/04/2019
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Roma Finance unveils bridge-to-term product
Roma Finance has secured institutional funding for a medium term mortgage product that customers can use to move from the lender’s bridging loan once their property refurbishment project has been completed.


Initially, the five-year buy to let mortgage will be offered to existing customers as a way of assessing demand.

It will be available on a repayment or interest-only basis with rates dependent on loan-to-value (LTV). The maximum loan size will be £500,000 and maximum LTV will be 75 per cent.

Roma believes the product will offer customers several advantages over refinancing their bridging loan with a third-party lender.

It will use the same surveyor who valued the property before the works commenced which, it is hoped, will mitigate valuation risk.

The increased value of the completed property should mean the customer can take equity out of the property if, for example, they wish to fund a further bridging project.

At the time of refinancing from bridge to term, the property will not need to be fully let, as Roma will take into account the borrower’s other income. Roma will also offer its customers dual representation for the refinance which they hope will accelerate the move from bridge to term.

Roma secured its first funding line in July 2016 and since then has continued to grow. Its optimism is consistent with the mood of the broader bridging community, which was encapsulated by a report earlier this year which said 57 per cent felt confident about the UK’s long-term economic prospects.

Understanding the exit route

Roma managing director Scott Marshall (pictured) said: “This unique product allows our customers to move onto their next project once their build or renovate to rent project has been completed.”

He said Roma was committed to finding ways to “de-risk bridging loans” for borrowers and added: “The key to a successful bridging loan has always been understanding the exit route and, since we’re now able to offer this ourselves, it provides yet more reasons for brokers to place their bridging business with us.”

Marshall said he expected “demand for this product to be huge”.

A spokesperson for Roma told Specialist Lending Solutions: “No cases have gone through yet but Roma is talking to customers who are on their bridging product and to brokers, so things could happen fairly quickly.”

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