Roma Finance and Monmouthshire BS launch holiday let deals

Roma Finance said the staycation was going to be a huge part of many families plans, with its deal being a five-year base rate tracker suitable for holiday let and serviced accommodation.

A maximum loan to value (LTV) of 70 per cent applies with a maximum loan of £500,000. Repayment and interest-only options are available and it has an arrangement fee of 1.95 per cent.

The tracker has rates at 65 per cent LTV of 4.89 per cent plus base rate, which is currently at 0.1 per cent, and for 70 per cent LTV it is 5.39 per cent plus base rate.

Roma will allow top-slicing of other income to mitigate the seasonality of holiday lets and added that each case is underwritten individually.

Existing customers moving from a bridge to the term product can use Roma’s solicitor for dual representation to help speed up the transaction.

Managing director Scott Marshall said: “Holiday lets can provide property investors with another income option rather that the buy-to-let route which has seen a lot of changes in recent years.

“Monthly rental income and yields can be higher than many other forms of property investment as renters are looking at the location of the property and using it to visit local beauty spots and landmarks.

“We’ve seen an increase in enquiries about this type of finance on well-located houses and apartments and the staycation is also proving to be a popular choice for many,” he added.

Monmouthshire BS

Monmouthshire Building Society has re-entered the holiday let market with a range of products for individuals, joint applicants and limited companies available throughout England and Wales.

The range allows the mortgage holder to let the property through a variety of avenues, including Airbnb.

The range includes a two-year fixed rate remortgage at 3.35 per cent with a maximum LTV of 75 per cent and a product fee of £499.

A minimum loan size of £40,000 and maximum loan size of £1,000,000 applies and a total of £3,000,000 aggregate across the portfolio.

One free standard valuation is included for properties up to £1m, and assisted legal fees are included along with an early repayment charge of three per cent.

Product development manager Dan Goulding said: “These products are an ideal solution for anyone looking to enter the market including first time landlords, add to their existing portfolio or remortgage an existing property.”