News

There are a wide range of solutions Omega provide to our introducing partners, IFAs and brokers that enable them to deliver a comprehensive offering to their client base across the specialist property and commercial finance space.

One specific area is bridging finance, including residential bridging, commercial bridging and mixed use property loans.

There is a growing demand for this type of finance arrangement, whether that be for required refurbishment works or speed to complete, and can be used wherever there is a financial gap that needs to be addressed. Terms are available to support transactions across the full range of property types; large or complex residential, new development schemes, or specialist property and commercial bridging finance which can be secured against; industrial premises, offices, retail, leisure units and more.

Timeframe for Bridging loan

Bridging loans historically had terms of 12 months or less, and can provide a cash boost whilst awaiting longer-term financing, i.e. it gets you from where you are to where you want to be.

The lines have become blurred in recent times between short and medium-term funding with some traditional short-term funders extending maximum loan terms out to 3 or even 5 years in some cases.

Don’t lose out on a property

Usually, when a quick purchase is vital such as in an auction scenario or a once-in-a-lifetime business opportunity, a bridging loan allows purchases to complete in a much shorter time frame than traditional funding. We work closely with our introducing partners, IFA’s and brokers to ensure our clients can have swift access to finance. This enables them to complete transactions today, rather than risk losing properties.

This has never been more true than in today’s market, lead times to complete term loans have continued to lengthen meaning many clients often need to utilise short-term finance to secure a purchase, rather than risk losing that specific property.

This can be particularly useful in chain breaks for residential purchases, or for business owners who are looking to buy commercial premises and allow time to get a new business up and running or wait for the owner-occupied mortgage to complete.

Other reasons for securing a bridging loan:

• Properties in need of refurbishment
• Conversion projects
  (i.e. office to residential schemes)
• Paying for the renovation work on assets or uninhabitable property
• Releasing equity for a new deposit
• Development Exit or DevExit allowing you to start on the next project
• Buying land for property development
• Releasing capital for a deposit
• Bridging loans to flip a property or refinance
• Development finance for ground-up builds
• Buying below-market-value transaction (funding against OMV)

Clearly, with the nature of a bridging loan, lenders will scrutinise closely the exit plan or how the client will repay the loan. This is something Omega ensure is addressed at the outset, often starting the bridging loan and term loan applications simultaneously to deliver an exit strategy onto cheaper terms as soon as possible.

Omega has long-standing relationships with established lenders and can therefore secure terms for bridging finance and importantly exit strategies not otherwise available.

Speak to the experts today on how we can help.