Catalyst Property Finance has launched a ground-up development finance product, with pricing starting from 5.25% plus the base rate.
The product is aimed at residential and mixed-use schemes up to 20 units across England and Wales.
This looks to help brokers with property developer clients, offering leverage of up to 85% loan to cost and 65% loan to gross development value (LTGDV). Loan sizes range from £250,000 to £5m.
Catalyst Property Finance added that it has committed to a “single-stream” service model, so every development finance application is managed by a dedicated business development manager (BDM) and underwriters from enquiry to completion.
The product also has no commitment or non-utilisation fees, offering a “more cost-effective funding solution” to developer clients.
Chris Fairfax (pictured), CEO of Catalyst Property Finance, said: “We have built amazing resources for understanding and processing refurbishment risk of all natures, and we look forward to applying this knowledge to assist developers to succeed with small-to-mid-market ground-up schemes.
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“With dedicated institutional development funding, this is not a bridging or refurbishment capital disguised as development finance – we have focused on delivering a senior stretch proposition that balances higher leverage with leading interest rates and fees.”
James Farge, sales director at Catalyst Property Finance, added: “Catalyst has built a strong reputation for delivering for both our borrowers and intermediary partners across bridging and refurbishment finance. We are now bringing this same relationship-led approach to our ground-up offering, supported by enhanced pricing and greater flexibility.
“This marks an exciting step forward for both our business and the wider industry, as Catalyst seeks to address many of the frustrations developers often encounter with more traditional sources of ground-up development finance.”