The lender said this was to cater to the need for high leverage on smaller transactions from £250,000 to £5m.
Catalyst will offer loans up to 85% loan to cost net of interest, and 70% loan to gross development value (LTGDV).
It has variable interest rates of 6.5% over the base rate per annum, and fixed rates from 10.5% per annum.
Chris Fairfax (pictured), CEO of 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 6.5%+ BBR, and fixed rates from 10.5% per annum, we’re pleased to deliver a competitive offering that helps developers’ cash flow and profit margin.”
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Catalyst said its entry into this market was backed by a “strong team” with expertise in property lending, who understood the “intricacies of the development process”.
Fairfax added: “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.”
Anna Bennett, marketing director at Catalyst, said: “If there’s one product brokers ask our business development managers for time and again, it’s 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 one 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.”
