Medium-term entrants warmly welcomed with regulation reforms


By yuan Phoon


The medium-term market is expected to see a number of new entrants this year with Omni Capital and Bridge- bank Capital confirming plans to offer 2-year to 5-year products. Laurence Goodman, man-


aging director of Bridgebank, said he saw a niche for those types of products. He said: “I think it’s a spe-


cialist sector and for those lenders with access to the funds I think there’s an op- portunity there. “The 2-year to 5-year


product provides a greater element of flexibility in the market place over the bridge and it works as an adjunct to bridging. “There are a number of


players already trying to get into that space. There are a number of high-end property finance products we’re look- ing at adding to that space at the moment. We’re working


quite hard at expanding our product range. “We’re going through due


diligence and getting our- selves prepared for a nice and clean professional start when we’re ready. We don’t rush into things.”


“Anything shorter than 12 months will stay outside of regulation however any residential loans over 12 months will be caught by regulation which will include medium-term loans”


Omni Capital consultant,


Paul Munford, also recently confirmed plans to enter this space with commercial deals up to three years and buy-to- let deals up to five years. He said: “The longer term


products are intended to give peace of mind to borrow- ers who want to factor in the flexibility of a bit more time to find an exit and not be forced into selling to meet finance deadlines. The 24 month deals are really 12


month deals with a backstop if it’s needed.” Precise Mortgages also


offers deals up to 18 months, making it another player in the more medium term space while Dragonfly Finance offers loans up to 24 months. However Robert Sinclair,


director of the Association of Mortgage Intermediar- ies, said he expected bridg- ing loans over more than 12 months to be caught in the Financial Services


Authority’s Mortgage Market Review Paper due later this year. He said: “Anything shorter


than 12 months will stay out- side of regulation however any residential loans over 12 months will be caught by regulation which will include medium-term loans. “If you can prove however


the loan is for a professional, a business-to-business loan then it won’t have to fall un- der regulation.”


Borro completes £1m loan Borro has completed its first £1 million loan via specialist intermediary Niche Financial Solutions. The deal was secured against a 19th century fine art collection, valued at £5m and was to fund a large property deal. Malcolm Scanlon, owner at Niche Solutions, said: “The advantage of Borro was that there were no restrictions in place meaning the money was transferred a lot faster than traditional lenders. The client will pay the loan back when they receive the proceeds from another sale in the next four months.”


News in Brief


• Short-term lender Tiuta completed 29% more deals in May than in April.


• Mortgages for


Business has completed its first residential investment mortgage with new lender Whiteaway Laidlaw Bank.


• National funding provider Bridging Finance Limited has hit its lending target of £150m.


• Investment specialists Octopus Investments have provided short- term asset lender Borro with a new funding line.


• Dr Neil Blake, director of economic analysis at Oxford Economics, said the base rate would stay on hold for the rest of this year and “may well stay at 0.5% for the next year as well”.


• Montello Bridging Finance has become a member of the Association of Short Term Lenders.


• Short-term bridging finance lender Omni Capital has appointed former Money Partners boss Colin Sanders as CEO and is expanding into the unregulated residential market.


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