to success in this marketplace. It’s great that the bridging market more widely is becoming more competitive as well because it pushes everyone to do their best and offer the best products. “I think Omni Capital stands apart because the experience of our team allows us to be flexible in the deals we can do as well as the certainty of the funding we have in place. That means we’re looking for ways to get deals done not the other way around.” Munford nods. “The market in 2009 was completely on its knees,” he explains. There was little mortgage product, few providers and few brokers. The result of that was opportunity. “In the latter part of last year we looked at the lack of credit available in the market generally and the arbitrage between the fact that interest rates were very low at 0.5% and in the short term marketplace people would pay a premium for speed and a quality product that delivers what it says on the tin. “That’s what Omni Capital is all about.
It’s delivering finance fast and reliably. The fallout from the credit crisis created a lot of distrust for intermediaries with product providers about what they want to do. There’s still mistrust about whether lenders want to lend or put as many obstacles in your path as possible to avoid lending. “We identified the short-term lending market as one where we could add some value. In the past lenders could process a transaction in three days in some cases – now that’s taking three months. Omni Capital is about bringing the timescales back to the sort of levels we were used to pre crunch.” Munford explains how the lender was
set up.
“I have acted in my MCIFA capacity for Candy & Candy since they entered the development market in London and that existing relationship led to talks about using their private equity fund to lend into the London property market.” The result of those conversations is Omni Capital. A combination of CPC’s funding and MCIFA’s 23 year experience in the property lending market and its 25,000 strong client base. “MCIFA’s experience of the
intermediary market is key in this,” says Munford. “It’s alright having the money to lend on the one hand but on the other you have to be able to distribute it. This is not a business that relies solely on our clients though, that’s a small part of it, it’s our experience of working within the intermediary market that’s important.” By that, Munford means that Omni Capital will do business with any broker in the market if the deal is right. The lender has key distribution partners but is looking for investors who understand the property market and need some cash to take advantage of the many opportunities out there at the moment.
“One such opportunity is for borrowers with an existing mortgage taken out
before mortgage criteria tightened severely and who is now looking at being forced to downsize,” explains Munford. If the property fits Omni Capital’s
requirements it will lend a second charge to help the borrower improve the value in their property and lower the LTV on their first charge. “We’re targeting asset rich, cash poor people with property in the area inside the M25,” he says. “But having said that if a broker approached us with a sporting estate in Devon we’d look at it.” He’s keen to show that flexibility is a key component in the Omni Capital offering. They’ll consider lending on foreign assets and in high loan-to-value deals where they want extra security
mortgage introducer APRIL 2011 33
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