These types of loans are also called bridge financing or a bridge loan. A bridging loan is short-term financing used until a person or company secures permanent financing or removes an existing obligation. Bridge loans are short term, typically up to one or two years. These types of loans are generally used in real estate

Roma considers bridging finance from £75,000 up to £3 million although larger loans can be considered by referral.

A bridging loan can be used for almost any purpose such as:

• Purchases from auction – with fast completion in the required time frame
• Planning gain / change of use – to maximise property value and income
• Chain breaking mortgage – to enable a borrower to progress a purchase before completing a sale on their existing property
• Releasing cash from probate on an inherited property – so that the property can be sold
• Refurbishment finance – to maximise rental income
• Purchase at undervalue – letting a borrower capitalise on a one-off opportunity

In most circumstances an exit strategy will be required to ensure there is security on how the finance will be repaid. Exit routes are usually the sale of the property that the loan has been secured against or refinance via another form of finance.

At Roma, all our loans are manually underwritten with a focus on the borrower instead of the property. There is a focus on the strength and capability of the borrower and their exit strategy In order to pay off the loan.