Specialist lender, Catalyst, has further improved its lending criteria across the range, creating more opportunities for brokers and their property clients.
Highlights of the changes include:
Heavy refurbishment finance
Now available to 75% of OMV (Open Market Value) and maximum loan size increased to £7.5m. Maximum construction budget up to £3m and 50% GDV.
There is no longer a restriction on the maximum square foot expansion, only one original wall is required to remain standing throughout the construction process and into the finished property.
Commercial to residential conversion bridging
Now available to 70% OMV where planning is in place, and to up to 65% OMV where no planning is in place but there is an obvious C3 residential/mixed-use opportunity.
Commercial property bridging
Maximum loan size increased to £10m
Complex bridging
Maximum loan size increased to £10m. Complex bridging helps borrowers with credit issues, no PGs, non-standard property, and loans that fall outside of Catalyst’s ‘everyday’ bridging.
Capital raising borrowers
Where the risk makes commercial sense, there is no LTV reduction for borrowers taking cash out. Borrowers capital raising against an unencumbered property is not classed as a ‘cash out’.
Borrower’s experience
Experienced borrowers are now required to demonstrate three similar developments in the last five years (not two years). Borrowers can still lean on their contractor’s experience, subject to satisfactory evidence.
Land with planning bridging
Maximum loan size increased to £3m
Second charge bridging
Maximum loan size increased to £10m
Chris Fairfax (pictured), CEO at Catalyst, said: “We are really excited to launch a number of product improvements in bridging, development and refurbishment.
“The business has experienced high growth since launch in 2018 and we have invested heavily in technology, human resource, and distribution partners to create a platform that is confident and ready to handle our next stage of growth.
“This growth will be fuelled by our ability to say “yes” to an increasing amount of excellent risk opportunities moving forward.
“Our company credo is “never miss a good opportunity” and this is now more meaningful than ever.
“I would like to express our sincere gratitude to all capital partners that have, and continue, to support Catalyst and we are incredibly grateful to our broker partners who continue to trust us to deliver.”
