Omni Capital goes beyond bridging with 3-year product

Bridging the gap between traditional short term lending and longer term offerings, specialist lender Omni Capital has launched a three-year term product aimed at domestic and globally-mobile high net-worth clients serviced by brokers, IFAs and wealth managers.

The new, fully-funded facility is linked to Bank of England Base Rate (currently 0.50 per cent) and suitable for a wide range of residential investment property-backed borrowing scenarios where conventional bridging periods are not long enough.

Omni Capital confirmed that demand from intermediaries was the main driver behind the new product's design, which promises to fill an important gap in the market not currently catered for by other providers.

Steve Olejnik, Head of Sales at Mortgages for Business - one of a small group of specialist distributors chosen to pilot the product - observed: "Innovation and progressive thinking set apart the UK's dynamic short term lending sector. As characterised by Omni's new term facility, we are finding better and more complete ways to help the rising number of clients struggling to source funding. A particular feature of this product we like is its inherent suitability as a solution-provider for scenarios involving complex ownership structures."

Omni Capital said the three-year term facility is tailored to high net-worth clients alert to irresistible property investment opportunities in the still-booming London and South East England regions. To qualify, borrowers will need to prove personal assets of at least £1 million.

Providing attractive income-earning opportunities – and a complementary liquidity solution that does not compete directly with their own offerings – Omni Capital said it believes the new product will appeal directly to wealth managers and advisers servicing an up-scale clientele with considerable assets under management.

Key features of the three-year term facility include:

•    All rates linked to BoE Base Rate - starting from BR + 6.45 per cent pa
•    Interest-only repayments
•    LTVs up to 75 per cent
•    Prime and non-prime postcode options available
•    Minimum loan £500,000; minimum property value £750,000
•    Rental income from investment property assessed at 120 per cent of debt serviceability
•    Supplementary income allowed
•    Available to individuals and corporate entities
•    First charge on residential investment property only
•    ERCs apply on a reducing scale

Colin Sanders, Chief Executive Officer of Omni Capital, said: "We spent several months conducting fact-finding research with our partners regarding the new products they want from lenders. A flexible, well-priced, three-year term product was the answer that emerged. Linking it to high-end clients - from whom sustained demand is assured - provides the element that makes Omni Capital the obvious provider.

"Listening to our brokers," he continued, "we have designed the ideal premium solution for residential property investment opportunities where a traditional bridge just isn't enough. By providing a longer term facility, we give the client additional time at a highly competitive price to realise the full potential of their investment before exiting via sale or refinance."

He concluded: "Backed by the full resources, expertise and substantial funding that have become hallmarks of the Omni Capital offering, I'm confident our new term facility will find a receptive audience among wealth managers and advisers servicing a sophisticated clientele alive to the compelling opportunities offered by canny property investment."