Catalyst enters development finance market

The development finance product allows borrowing up to 95 per cent loan to costs (LTC) including interest or 75 per cent loan to gross development value (LTGDV) with annual interest rates starting at 7.95 per cent per year.

Catalyst currently offers bridging, development exit, auction and refurbishment bridging loans. 

Chris Fairfax (pictured), Catalyst’s managing director, said the company’s entrance into development finance was in many ways a “natural progression” as it was already an established lender in refurbishment bridging and development exist finance.

Fairfax continued that strong demand exists or a 95 per cent LTC product for residential and mixed-use schemes and this combined with its competitive rates and “can-do” attitude would make their offering attractive. 

At first, Catalyst will focus the lending on the South with sites in Berkshire, Bristol, Buckinghamshire, Devon, Dorset, Hampshire, Oxfordshire, Somerset, Surrey, West Sussex, and Wiltshire.  

“We will roll-out to the rest of the UK in the future,” Fairfax said. 

 Tom Clark, intermediary at Napex Finance, said: “As a business, Napex have hugely enjoyed our relationship with Catalyst since they entered the market.

“They continually bring to market products that are needed and not just copying the rest. This development product delivers in four key areas for us that will be useful to our clients and is much needed in the market.”