It is shown, by means of Hartree-Fock-type calculations using the intermedi
ate neglect of the differential overlap (INDO) method, that polaronic-type
charge transfer vibronic excitons (CTVE) in ferroelectric oxides could lead
to the formation of a new phase. The ground-state energy of this phase of
strongly correlated CTVE lies within an optical gap of pure crystal, and is
characterized by a strong tetragonal lattice distortion, as well as ferroe
lectric and antiferromagnetic ordering. It is shown also that clusters of t
he CTVE phase being stabilized by oxygen vacancies could be responsible for
the unusually strong optical Second Harmonic Generation (SHG) in nominally
pure incipient ferroelectrics, like KTaO3 (KTO) and SrTiO3 (STO), especial
ly in the case of SHG induced by an external electric field. Another experi
mental manifestation of CTVE is related to a drastic red shift with tempera
ture of the fundamental absorption (FA) edge in ferroelectric oxides SBN an
d KTO observed at high temperatures. This effect could be explained by ther
mal population of a low-lying bottom part of an additional valence band ind
uced by the CTVE phase.