A Hertfordshire-based brokerage has announced that it will offer an exclusive bridging product for the purchasers of residential property.

Omega Commercial Solutions will fund the product through an undisclosed funding line and will offer borrowers gross loans up to 84 per cent of valuation for purchase and refurburbishment transactions, and 78 per cent for more straightforward bridging transactions.

Kevin Jones, MD at Omega and Chairman of the National Association Commercial Finance Brokers (NACFB), said: “We are delighted to be able to provide what we believe to be a really exciting product, which will allow our clients to make the best use of their capital on a number of transactions rather than having it tied up in one transaction.”

The loans terms of both products are said to be highly competitive, with a 1.5 per cent pay rate per month and no redemption penalties. There are however certain restrictions as to who can benefit from using this product. The brokerage states that it may only be used for properties in the London area, and those which are not the client's primary residence.

David Sampson, Head of Commercial at Omega, said that the new product offering displayed just how confident the investors are feeling about the future of the residential property market in and around London.

“We have been involved in commercial brokering activities including bridging for almost 20 years, and this is probably the most exciting exclusive product we have made available for some time given the current economic climate. During recent months bridging has become much more widely accepted as a mainstream form of lending product and we believe this is one of the most forward thinking products in the market,” he said.

However not all brokers are content with the fact that their geographical location continues to act as a barrier to the most competitive loan rate.

Our resident blogger, Bob Havenhand, who is a well established Norther-based broker, said: "These sort of products do get 'up the nose' of us Northern brokers somewhat. It's great to have continued lenders and new products enter the market, but like most brokers, our clientele is national so many of the products just don't appeal to us."

That being said, few can deny that the London housing market is less risky than in many other parts of the country, and when this situation improves we may begin to see products available more widely.

For further information, contact Omega Commercial Solutions on 0845 230 2100.

By Katie-Jill Rowland