Catalyst Property Finance has introduced a significant reduction in rates across its property finance offerings.
- The new rates cover a wide range of services including bridging, refurbishment, and specialist buy-to-let loans.
- Unregulated bridging and development exit finance start now from 0.79% per month.
- Commercial bridging rates are set at BBR + 7.50% per annum, while specialist buy-to-let loans start at 8.75% per annum.
- Increased loan-to-value ratios for second charge and commercial products enhance borrowing capacity.
Catalyst Property Finance has initiated a considerable reduction in interest rates across its diverse range of property finance services. This move affects several financial products, including bridging finance and specialist buy-to-let loans, providing borrowers with more competitive options amid a stabilising UK property market.
Unregulated bridging loans and development exit finance now attract a starting rate of 0.79% per month, representing a strategic adjustment to make these borrowing options more appealing to developers and investors. This reduction may offer increased benefits by lowering the cost of finance.
Refurbishment finance is now available at 0.85% per month up to 50% of the open market value (OMV) of a property. For refurbishment costs between 50% and 100% of OMV, the rate is set at 0.89%, and for costs exceeding 100% of OMV, the rate is 0.97% per month. Such tiered pricing aims to provide flexibility based on the level of investment involved.
Catalyst’s ‘Flexible’ bridging product, designed for borrowers with complex credit histories or limited experience, sees its rate begin at 0.99% per month. This product continues to support a broader range of client needs.
The commercial bridging finance proposition now carries a margin of BBR + 7.50% per annum. This ensures Catalyst’s offerings remain competitive in the commercial loan sector.
Additionally, specialist buy-to-let loans start at 8.75% per annum, providing attractive financing solutions for property investors.
Catalyst has also increased the loan-to-value ratio from 65% to 70% for its second charge and commercial loan products. This adjustment is likely to facilitate larger borrowing amounts and is expected to be well-received by intermediaries and clients alike.
Anna Bennett, marketing director at Catalyst, highlighted the enhancements, stating the company’s product range is more streamlined and criteria simplified, offering familiar flexibility in a more accessible format. Collaborating with the sales director, Spencer Gale, Catalyst has refined its product naming and visual guide to improve user experience further.
Chris Fairfax, Catalyst’s CEO, expressed satisfaction with these changes, noting the improvements in leverage and loan size across their specialist offerings. He remarked that these decisions mirror recent stabilisation trends in the UK finance and property markets. “Intermediaries can now support their developer and investor clients with highly competitive funding that provides increased profit margins and less capital outlay.”
Catalyst’s rate reductions and increased leverage options align with market stabilisation, offering enhanced flexibility for borrowers.
