Roma Finance has launched a holiday let and serviced accommodation five-year term base rate tracker mortgage.
The criteria includes a maximum LTV of 70% and an arrangement fee of 1.95%. The maximum loan is £500,000, with repayment and interest only options available.
As income on holiday lets can be seasonal, Roma will allow the borrower to ‘top slice’ actual rent from other provable income and each case is underwritten individually.
With the Bank of England base rate currently being at an all-time low of 0.1%, the tracker product has rates at 65% LTV 4.89% plus base rate and for 70% LTV 5.39% plus base rate.
For Roma’s existing customers moving from a bridge to the term product, Roma’s solicitor can, at the borrower’s request, act on a dual representation basis and this can help speed up and simplify the transaction.
Scott Marshall, managing director at Roma Finance, 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.”
