It makes improvements to its lending criteria
Specialist lender Catalyst Property Finance has introduced changes to its lending criteria, making a number of product improvements in bridging, development, and refurbishment.
Heavy refurbishment finance is now available to 75% of Open Market Value (OMV) and the maximum loan size has increased to £7.5 million. 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.
Catalyst’s commercial to residential conversion bridging is 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.
Meanwhile, the maximum loan size on commercial property bridging and complex bridging has increased to £10 million. Complex bridging helps borrowers with credit issues, no PGs, non-standard property, and loans that fall outside of Catalyst’s ‘everyday’ bridging.
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.
The maximum loan size on land with planning bridging has increased to £3 million, and second charge bridging to £10 million.
“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,” Chris Fairfax, chief executive at Catalyst, said.
“This growth will be fuelled by our ability to say ‘yes’ to an increasing amount of excellent risk opportunities moving forward,” he added.
