Catalyst Property Finance has announced a significant reduction in its property finance rates, impacting several product offerings.
- The rate reductions include bridging, refurbishment, commercial bridging, ‘Flexible’ bridging, and specialist buy-to-let loans.
- These changes feature unregulated bridging and various finance options starting from 0.79% per month.
- Refurbishment finance is adjusted, with specific rates based on open market value percentages, reaching up to 0.97% for extensive costs.
- Catalyst is also increasing its loan-to-value ratios, reflecting a strategic enhancement of its financial products.
Catalyst Property Finance, a notable entity in the finance industry, has initiated a comprehensive reduction in interest rates across its available property finance products. This strategic move aims to make financial solutions more accessible and cost-effective for borrowers. The reductions affect multiple sectors, including bridging finance, refurbishment loans, commercial bridging, and bespoke solutions like ‘Flexible’ bridging and specialist buy-to-let options.
In detail, these revised rates start as low as 0.79% per month for unregulated bridging, auction, development exit, and finish and exit finance products. The refurbishment finance options have been adjusted to accommodate varying degrees of property costs, with a rate of 0.85% per month for expenses up to 50% of the open market value, 0.89% for 50% to 100% of OMV, and 0.97% for expenses exceeding 100% of OMV.
The ‘Flexible’ bridging finance is designed specifically for borrowers experiencing adverse credit or possessing limited experience in property investment, offering rates commencing at 0.99% per month. Meanwhile, commercial bridging products are now priced at the base rate plus 7.50% annually, providing a competitive edge in the current market landscape. Specialist buy-to-let loans have also seen adjustments, beginning at 8.75% per annum, thereby opening new avenues for investment in the property sector.
In tandem with the rate reductions, Catalyst has enhanced its loan-to-value ratios, thereby improving the potential borrowing capacity for second charge and commercial products. Loans can now reach up to 70% of the property’s 180-day value, increased from 65%. This adjustment reflects Catalyst’s commitment to evolving with market conditions and providing tailored financial solutions to meet the needs of various investors and developers.
Anna Bennett, the marketing director at Catalyst, remarked on these developments, highlighting the streamlined and simplified nature of the updated product range and criteria. According to Bennett, this refinement makes the offered solutions more digestible for brokers, facilitating them with a refreshed product guide design that aligns with Catalyst’s longstanding flexibility and wide-ranging funding solutions. Collaborating closely with the new sales director, Spencer Gale, Bennett emphasised the intention behind the aesthetic and functional updates to the product presentation, aiming to enhance broker navigation and client service.
Chris Fairfax, the CEO, underscored the significance of these changes, noting a welcome stabilisation within the UK finance and property markets, which supported Catalyst’s decision for these rate reductions. He articulated that these adjustments will enable intermediaries to aid their developer and investor clientele with advantageous funding, ultimately increasing profit margins and reducing upfront capital requirements. Fairfax expressed confidence that these measures would re-invigorate marginal property deals, providing a boost to the market.
Catalyst’s strategic rate reduction and product enhancements reflect a forward-thinking response to stabilising market conditions, aimed at enriching financial accessibility.
