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 facility is linked to Bank of England Base Rate and is tailored to high net-worth clients looking at property investment opportunities in London and south-east England regions.
To qualify, borrowers will need to prove personal assets of at least £1 million.
Key features of the three-year term facility include:
- All rates linked to BoE Base Rate – starting from BR + 6.45% pa
- Interest-only repayments
- LTVs up to 75%
- Prime and non-prime postcode options available
- Minimum loan £500,000; minimum property value £750,000
- Rental income from investment property assessed at 120% 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
Omni Capital said that demand from intermediaries was the main driver behind the new product’s design.
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 provides attractive income-earning opportunities and will appeal directly to wealth managers and advisers servicing an up-scale clientele with considerable assets under management. It is also a complementary liquidity solution that does not compete directly with their own offerings.
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, 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.”