Catalyst Property Finance has launched aground-up development finance product with tracker rates starting from 5.25% + BBR, targeting residential and mixed-use schemes of up to 20 units across England and Wales.
The lender is offering leverage of up to 85% loan to cost (LTC) and 65% loan to gross development value (LTGDV), with loan sizes ranging from £250,000 to £5m and terms of up to 24 months.
Catalyst said the product has been designed to provide brokers with a flexible solution for property developer clients operating in the small-to-mid market.
SINGLE-STREAM SERVICE
In a move aimed at addressing broker frustrations around inconsistent points of contact, the lender has introduced what it describes as a “single-stream” service model. Each case will be managed by a dedicated business development manager and underwriter from initial enquiry through to completion.
The product also carries no commitment or non-utilisation fees, which Catalyst said would help brokers present a clearer and more cost-effective funding structure to developers.
SENIOR STRETCH PROPOSITION
Chris Fairfax (main picture), CEO of Catalyst Property Finance, says: “We have built amazing resources for understanding and processing refurbishment risk of all natures, and we look forward to applying this knowledge to assist developers to succeed with small-to-mid market ground up schemes.
“With dedicated institutional development funding, this is not a bridging or refurbishment capital disguised as development finance – we have focused on delivering a senior stretch proposition that balances higher leverage with leading interest rates and fees.”
GREATER FLEXIBILITY
James Farge, Sales Director of Catalyst Property Finance, adds: “Catalyst has built a strong reputation for delivering for both our borrowers and intermediary partners across bridging and refurbishment finance. We are now bringing this same relationship-led approach to our ground-up offering, supported by enhanced pricing and greater flexibility.
“This marks an exciting step forward for both our business and the wider industry, as Catalyst seeks to address many of the frustrations developers often encounter with more traditional sources of ground-up development finance.”
