Low Bridging Loan Rate Launched But You Better Be Quick

Roma Finance

A bridging finance lender has launched a rock bottom special mortgage rate of just 0.75% per month. It’s great news for borrowers looking for short term finance at a competitive rate but you’ll have to move fast – the offer is only open to cases that complete by May 31.

Roma Finance has introduced the offer in response to customers experiencing unnecessary delays with other lenders – latest figures from Bridging Trends data revealed the average time taken had crept up to 50 days in the first quarter of 2017, compared to 34 days in 2015. For customers looking for quick finance, longer delays can jeopardise projects and lead to financial loss.

Roma claims, as well as offering attractive rates, agreements in principle can be issued within one hour of the initial enquiry and completion can take place within 48 hours of solicitors being instructed.

Managing director Scott Marshall said: “This is a great offer for people who are experiencing delays with other lenders and it will help them to move residential investment property projects to completion.

“As we cater for most types of residential investments our bridging loans can be used to acquire unmortgageable property as well as to carry out renovations and change of use.

“We’ve not only reduced the rate for a limited time but are offering a fair commission of 1.5% as we look to build long term relationships with even more introducers looking to assist their customers.”

The latest product is perfect for individuals, developers, landlords and investors looking to acquire buy-to-let property, complete house of multiple occupation conversions, undertake property renovations, buy investment property at auction or are looking to purchase unmortgageable residential investment properties.

Borrowers can enjoy rates of 0.75% on up to 75% loan to value (LTV). The LTV can be increased with additional security.

The mortgage applies on first charges on residential properties and will range from £100K to £500K. A six-month term with interest deducted applies and there are no exit fees. However, the loan can’t be used for rebridging.

According Bridging Trends latest data, the top reason for needing a bridging loan is delays with a traditional mortgage, followed by refurbishment with the loan to contribute to part or all of the work.

Bridging loans are a short term financial solution, normally more expensive than a traditional mortgage option. They are used in instances where normal finance is not possible. For example, a gap in the chain between selling and completing on a home, buying a property at auction or renovating a property that is otherwise unmortgageable and getting it to a point to sell or where it is mortgageable.

Carl Eldridge is a journalist with more than 25 years’ experience working on local and then national newspapers, including a spell on the City Desk at the Daily Express, before switching from print media to the internet.

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