Roma Finance, the bridging, buy-to-let and development finance lender, predicts that the current stock market uncertainty will make brokers and property investors look more closely at how lenders are funded.
A strong and reliable funding strategy has played a key part in boosting Roma’s business success and lending growth in recent years, with institutional funding from a number of blue-chip companies such as The Royal Bank of Scotland, Cambridge Building Society and Foresight.
However, other types of lender may come under pressure from plunging stock markets as a result of problems with short term investment flow and longer term performance concerns. Those that rely on money raised from high net worth investors could have issues if their respective funders believe their cash is better served elsewhere. In the same breath those organisations using money from private individuals could also find them getting nervous causing issues for current borrowers requiring drawdowns or loan servicing.
With Roma’s funding strategy being so successful for a number of years, customers have peace of mind and security when they enter a bridging or development loan. Roma Finance are funded well into the future and aren’t relying on short term cash flow from third parties.
Roma Finance provides bridging and development finance for a variety of property types and purposes such as buying at auction, buy to lets, HMOs and semi-commercial property as well as ground-up developments. In addition, they offer a 5-year buy-to-let mortgage for purchasing investment property or exiting a bridging loan.
Scott Marshall, Managing Director at Roma Finance, said: “Now, more than ever, how a lender is funded is crucial as to where brokers and property investors place their cases. In these turbulent times I would recommend introducers carefully consider those lenders with strong backing. The current stock market uncertainty looks set to last a while longer yet, and as bridging is a short term funding vehicle now is the time to work with lenders like Roma Finance who have a proven track record in sustainable loan delivery.
”Our well-planned out funding strategy will also help us to maintain our clear growth strategy and ongoing investment in the business for things such as recruiting more expert staff, new technology and service delivery. We always lend with integrity, have a transparent approach to working with our business partners and customers and this will continue into the future.”