Self-employed landlords help fuel 32% increase in deals at Roma Finance
Roma Finance, the specialist property bridging lender, has seen a 32% jump in bridging over the last three months fuelled by a marked increase in business from self-employed property landlords and developers.
The hike in self-employed clients has grown, as many seek finance for investment property purchases, renovations and change of use to generate rental income.
Recently published figures from the Office of National Statistics (ONS) show that self-employment is at a 40-year high, and in 2014 there has been an 11.5% increase in the number of people becoming self-employed in the real estate activities’ category (the increase is a significant 63% since 2009).
Scott Marshall, lending director at Roma Finance, commented: “This makes perfect sense in the current market, as property prices remain relatively low, particularly at auctions, and there is a growing awareness by brokers and their clients of bridging finance as a vehicle to build a property portfolio.”
The specialist lending sector, has more than risen to the challenge of catering for the surge in self-employed clients, with a number of key benefits for acquiring or renovating property quickly using a bridging loan – such as criteria for change of use, lending with or without planning permission, a willingness to lend even if there is a blip on a client’s credit record and not requiring years of historical accounts for new start-ups.
Scott continued: “At Roma Finance we have seen this growth in the self-employed property professional at first hand. It’s good to see people capitalising on building a better future for themselves and their families. And with the pension pot being available from April 2015, this could further drive a rise in self-employed landlords as people make buy to let a component in their retirement planning.”
