Roma Finance launches five-year mortgage for property investors

The lender has secured institutional funding for this medium-term mortgage product that landlords can use to acquire buy-to-let property including houses in multiple occupation (HMO) or exit a bridging loan, even if they are not existing customers. 

This follows a trial period in April, where the lender offered the mortgage to its existing customers in order to assess demand. 

The mortgage has a variable rate from 4.24 per cent per year plus bank base rate, can be offered on an interest-only or repayment basis for loans up to £500,000 with a maximum loan to value (LTV) of 75 per cent. 

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 considered.  

Use same valuer

For existing Roma customers, the scheme mitigates valuation risk by using the same surveyor who valued the property before the works commenced.

It aims to provide 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 (pictured), 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.”