Roma Finance has cut its bridging and development rates across its product range, which includes buy-to-let, after obtaining fresh and sustainable funding lines with RBS and Cambridge Building Society.
The standard rate for residential investment property purchases or refinancing has been reduced to 0.75% per month, with no exit fee on loans from £50,000 to £5m, with a maximum LTV of 75%. Loan terms are three to 12 months.
“With new and sustainable funding lines in place to help us keep pace with the growing demand for our products, now is the right time to cut rates for our priority business lines,” said Scott Marshall, managing director at Roma Finance.
The Bank of England’s decision to crack down on buy-to-let lending through the introduction of tighter borrowing rules and stricter affordability tests mean that more landlords are now turning to less conventional forms of finance in order to carry on investing in the buy-to-let market.
Last year, Roma launched a five-year BTL mortgage product for purchasing an investment property or exiting a bridging loan.
Marshall added: “To cope with higher business levels, we continue to expand the Roma team and we are seeing growth in our lending for property acquisition and refurbishment.
“The new lower rates will further stimulate our business in a focused and strategic way, and we will continue to deliver excellent service to our introducers and customers.”