Catalyst has launched a senior ground-up development finance product, targeting smaller deals between £250,000 and £5m.
The product offers loans up to 85% loan to cost (LTC) net of interest, and up to 70% loan to gross development value (LTGDV).
Variable interest rates start from 6.50% plus Bank of England Base Rate (BBR) per annum, and fixed rates are from 10.50% per annum.
Anna Bennett (pictured), marketing director at Catalyst, said: “If there’s one product brokers ask our BDMs for time and again, it’s ground up development finance; so, we are excited to launch ground up and meet this demand.
“Our current funding appetite lies with experienced developers who have urban residential schemes from 1 to 15 units in England and Wales.
“We believe this funding is crucial in easing the housing shortage and enabling the delivery of smaller projects and first-time buyer-targeted properties.”
Chris Fairfax, CEO at Catalyst, said: “We understand the challenges developers face in securing the necessary funding to bring their projects to life.
“Our new senior product is specifically tailored to provide the leverage required to unlock potential and drive growth within the development sector.
“And with variable rates from 6.50% + BBR, and fixed rates from 10.50% per annum, we’re pleased to deliver a competitive offering that helps developers’ cash flow and profit margin.”
Fairfax added: “Catalyst’s entry into the development finance arena is backed by a strong team with expertise in property lending and a clear understanding of the intricacies of the development process.
“We are committed to building long-term partnerships with brokers and developers, offering a streamlined and efficient service underpinned by pragmatic underwriting and a collaborative approach.”
