Catalyst revises range; MFS lowers rates – round-up

Its heavy refurbishment refinance is now available up to 75 per cent of open market value (OMV) and the maximum loan size has gone up to £7.5m. The maximum construction budget has risen to £3m and 50 per cent gross development value (GDV). 

There are no longer any restrictions on the maximum square foot expansion of a development, and only one original wall needs to remain standing throughout construction and the finished property. 

For commercial to residential bridging loans, this is now available up to 70 per cent OMV where planning is in place, and 65 per cent OMV without. However, there must be an identifiable residential or mixed use opportunity. 

The maximum loan size for commercial property bridging has gone up to £10m as well as the maximum loan for complex bridging and second charge bridging. 

The maximum loan size for land with planning bridging has increased to £3m. 

For borrowers raising capital where the risk is commercially sound, there will be no loan to value reduction for taking cash out. Capital raising against an encumbered property will not be considered as taking cash out. 

Experienced borrowers must now demonstrate three similar developments in the last five years, a relaxation on the previous two year requirement. They can still use contractor experience depending on the evidence supplied. 

Chris Fairfax, CEO at Catalyst, said: “The business has experienced high growth since its launch in 2018. 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 number of excellent risk opportunities moving forward. Our company credo is ‘never miss a good opportunity’ and this is more meaningful now than ever.” 

MFS lowers rates for BTL mortgages and bridging loans  

Market Financial Solutions (MFS) has reduced rates across both its buy-to-let (BTL) mortgage range and bridging loan products. 

The specialist lender’s BTL mortgage rates now start from 3.29 per cent, down from 3.79 per cent. 

It is now allowing rolled-up monthly payments for up to nine months, previously six and deferred interest of up to two per cent, which was previously at 1.5 per cent. 

On the bridging side, MFS has extended the range for its lowest-rate residential bridging product. It is now offering loans from £100,000 to £4m starting from 0.59 per cent, up from a former maximum loan amount of £1.5m. 

MFS is also launching a competitive rate match initiative, where brokers can speak to the lender for a personalised solution which factors in rates they may have been quoted from other lenders. 

Paresh Raja, CEO of MFS, said: “MFS has enjoyed a very successful 12 months, but there is never room for complacency. Bolstered by our £300m of new funding, we want to ensure brokers and borrowers have access to the best products at competitive rates.  

“These changes, just in time for the new financial year, will certainly deliver that.”