Catalyst Property Finance

Catalyst enters development finance market

Catalyst has announced the launch of a new stretched senior development finance product.

It will offer high-leverage lending up to 95% LTC and 75% LTGDV, with interest rates from 7.95% per annum. 

Loan terms can be provided up to 36 months for facilities between £100,000 and £5m. 

Initially, the specialist lender will focus on the South, with sites in Berkshire, Bristol, Buckinghamshire, Devon, Dorset, Hampshire, Oxfordshire, Somerset, Surrey, West Sussex, and Wiltshire.  

The finance provider will then roll out the offering to the rest of the UK. 

“We are very excited to launch into the development finance market,” said Chris Fairfax, managing director at Catalyst (pictured above).

“In many ways, this is a natural progression for Catalyst, being an established lender of refurbishment bridging and development exit finance. 

“This is a much-anticipated launch; we have listened to the UK’s leading packagers and intermediaries, asking them what they need for their property developer client base. 

“Strong demand exists for a 95% LTC product — for residential and mixed-use schemes — combined with a competitive rate and the ‘can-do’ approach to lending that my team are known for.

“Being able to offer our existing broker partners and their clients another great funding option makes me very proud.”

According to its website, Catalyst’s development finance range can be accessed by experienced developers and contractors and requires personal guarantees of 20%. 

The lender’s facility and exit fees are from 1% and it has no early repayment charges. 

Tom Clark, director at Napex Finance, added: “As a business, Napex has hugely enjoyed its relationship with Catalyst since it entered the market. 

“It continually brings to market products that are needed and not just copying the rest. 

“This development product delivers in four key areas for us that will be useful to our clients and is much needed in the market.”

Leave a comment