Catalyst Property Finance, which provides first and second mortgage loans, will now offer highly leveraged development finance loans.
The development finance product allows borrowing up to 95% loan to cost (LTC) including interest, or 75% loan to gross development value (LTGDV) with annual interest rates starting at 7.95% per annum.
Catalyst currently offers bridging, development exit, auction, and renovation loans.
Chris Fairfax (illustrated), the chief executive of Catalyst, said the company’s entry into development finance was in many ways a “natural progression” because it was already an established lender in renovation and development finance.
Fairfax continued that there is strong demand or a 95% SLD product for residential and mixed-use projects, which, combined with its competitive rates and “can-do” attitude, would make its offering attractive.
Initially, Catalyst will focus lending on the South with sites in Berkshire, Bristol, Buckinghamshire, Devon, Dorset, Hampshire, Oxfordshire, Somerset, Surrey, West Sussex and Wiltshire.
“We will be rolling out to the rest of the UK in the future,” Fairfax said.
Tom Clark, Intermediary at Napex Finance, said: “As a business, Napex has greatly valued our relationship with Catalyst since entering the market.
“They continually bring the necessary products to market and don’t just copy the rest. This development product delivers in four key areas for us that will be useful to our customers and greatly needed by the market.
