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Our focus at Omega is to be a key support to our clients, introducers and partners we work with. When it comes to property finance and all areas of development finance, we aim not just to meet our clients and partners needs but to ensure we can facilitate the business and project presented, and that all parties benefit from the process. One significant area we remain very active in is property development finance. This can mean ground up phased schemes, smaller conversions, in addition to offering bridging loans and short-term finance solutions, particularly in the current market where properties are taking longer to sell.

What are Bridging loans and STLs?

Bridging loans or short-term finance are solutions-based funding that empower borrowers to access funds in a short space of time. Recent market conditions have meant that lender products have evolved with some lenders extending loan terms and deferring capital repayments, inclusive of structured interest arrangements. One of the advantages of this finance type is to facilitate releasing equity in an existing asset giving the capability to purchase new property. They can also be used to pay unexpected bills or as a solution for quick access to funds.

How do bridging loans and short-term finance help

In respect of the property market, challenging economic conditions and interest rates coupled with cost of materials have caused many projects to overrun in time, budget or both. The bottom line is properties are just taking longer to sell. The solutions we offer our clients, brokers, IFAs and introducers we work with are all designed to ensure that waiting on a sale of property does not stop clients from moving forward with another project or purchase. These can range from the straightforward sale of a property or refurbishment, conversion, or developments on mixed-use and commercial projects.

Who is it for?

The clients we tend to work with can range from experienced developers or first-time investors to major housebuilders. The skill and experience of our team and the breadth of lenders we work with, means we’re able to tailor funding solutions for projects of varying scale. In terms of finance, we can secure loans up to 90% of costs and an interest rate that is calculated in line with property investment pricing. We want our clients to make the most of their cash flow and interest can often be rolled into the loan to facilitate this. We are always mindful of all associated costs including professional fees and therefore ensure this is considered when recommending a facility to any client.

How to create an exit plan from STL

We can secure a range of finance solutions, but we always work with our clients and partners to ensure this is the right path for their client and that an exit plan is discussed. We view bridging and short-term loans as a positive financial solution that allows an individual to facilitate something temporarily and get them from where they are, to where they want to be. With both eyes firmly on ensuring viable exit solutions from any short-term structure.

An important part of our offering around property development finance is ensuring we have a range of financial options as well as a plan and strategy to exit focused on the specific client requirements and timings. We support our clients and network of IFAs, brokers and introducers, with strong professional service, and access to a range of lenders and products.

Please remember, we are not here to write business our introducing partners can place themselves, but to add an additional avenue to finance solutions they might otherwise not have access to. Ensuring future business is either passed back or indeed they continue to receive commission ongoing.