The five-year term base rate tracker mortgage has been introduced due to the lender believing that the ‘staycation’ will be a huge part of many families going forward.
With the Bank of England base rate currently at just 0.1%, the tracker product has rates of 4.89% plus base rate at 65% LTV and 5.39% plus base rate at 70% LTV.
The holiday let product’s criteria
- maximum loan of £500,000
- maximum LTV of 70%
- an arrangement fee of 1.95%
- repayment and interest-only options available.
As income on holiday lets can be seasonal, the specialist lender will allow the borrower to top slice rent from other provable income.
Each case will be underwritten individually.
For Roma’s existing customers moving from a bridging loan to the term product, Roma’s solicitor can, at the borrower’s request, act on a dual representation basis, to help speed up the transaction.
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“Holiday lets can provide property investors with another income option rather that the BTL route, which has seen a lot of changes in recent years,” said Scott Marshall, managing director at Roma Finance (pictured above).
“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.”
At the end of May, Roma increased its residential bridging LTV to 70% and 65% on semi-commercial.
The lender re-entered the market on 1st May after taking a temporary pause on new business applications amid the Covid-19 crisis.