Colin Sanders, Omni’s chief executive, said the short-term lender was in discussions with various funders to structure terms that would allow it to originate longer loans.
The medium-term products would include “an element of serviceability from the client” during the life of the loan in contrast to bridging deals where interest is rolled up and paid on exit.
Sanders said: “I think the market’s crying out for term products. To look at that is important as that’s where we’ve seen a disconnect in the market.”
Already new entrants are offering short-term finance and mainstream banks are offering term mortgage products at the super prime end of the scale.
Sanders added: “A lender with some flexibility offering products beyond three years and under 15 years would fill a gap. I do see that as a viable marketplace and it could potentially move into other areas once we have FSA regulation.”
Sanders refused to be drawn on specific timings but plans to launch the deals in the “not too distant future”, adding Omni would apply for Financial Services Authority approval.
Rob Jupp, managing director of Brightstar Financial, said: "This is great news for a gradually recovering intermediary sector and Colin Sanders and his Omni team should be congratulated if they can pull off such a fantastic coup."
Danny Waters, chief executive of Enterprise Finance, added: "It's positive news that Omni intends to diversify into originating longer term loans, something the management team there have a track record of doing.
"It's also reassuring to hear that institutions are prepared to back good management teams and fund longer term loans."
