Catalyst, Foundation Home Loans and Shawbrook update product offerings

Catalyst Property Finance, Foundation Home Loans and Shawbrook Bank have made changes to their product ranges.

Catalyst Property Finance

Catalyst Property Finance has revamped its short-term finance options for bridging, refurbishment, commercial and land.

It has brought back its ‘land with planning’ and ‘100% commercial bridging’ offerings, as well as adding two new products: ‘credit repair bridging’, to help borrowers with credit issues; and ‘AVM with rates at 0.50%’, a cost-effective solution for lower leverage residential loans.

The land with planning product provides loans between £100,000 and £1m, with LTVs up to 60% of OMV, rates starting from 0.79% and loan terms between three and 24 months.

The 100% commercial bridging facility offers from £100,000 to £3m up to 70% LTV of OMV, with rates from 0.65% on terms between three and 24 months.

The new credit repair bridging loan is designed for borrowers with significant county court judgements, mortgage arrears or other recent credit issues.

Bankruptcy or individual voluntary arrangements must be discharged or cleared to be eligible.

Borrowers opting for this product can get between £100,000 and £5m at up to 70% LTV of 180-day value on terms from three to 24 months, with rates starting at 0.75% per month.

The AVM bridging loan offers between £100,000 and £750,000 at up to 50% LTV and 0.50% rate per month on terms from three to 24 months. 

It has been created for borrowers who need bridging finance for residential property that is suitable for an AVM — the lender also allows some very light refurbishment.

All four products are available for UK individuals or limited companies, as well as offshore limited companies, and have no ERCs with one-month minimum interest.

Anna Bennett, marketing director at Catalyst Property Finance, stated: “The UK bridging market is incredibly active; this is the perfect time to sharpen our pencils and provide even more options for brokers and their clients. 

“Our new business team is ready to provide brokers with one-to-one product training, and they also respond to all new loan enquiries within two hours.” 

Foundation Home Loans

Foundation Home Loans has cut rates across its standard and HMO ranges, as well as some of its short-term letofferings, and launched a new limited edition, limited company BTL five-year fixed-rate product and two short-term let offerings.

The limited company product is priced at 3.24%, 10 basis points below Foundation’s core limited company range, with a reduced 1.5% fee, and is available up to 75% LTV with a maximum loan of £1m. ICR is calculated at 125% of pay rate.

The lender welcomes portfolio landlords and has no limit to the background portfolio size of each borrower, subject to a maximum of £3m with Foundation.

The new short-term let products include a 65% LTV offering at a rate of 3.49% and a 75% LTV product at a rate of 3.89%, both on a two-year, fixed term.

Foundation has also reduced its rates across its standard and HMO BTL ranges.

For its standard BTL products, the new rates include:

  • 3.19% for two-year fixed rate at 65% LTV
  • 3.34% for two-year fixed rate at 75% LTV
  • • 3.39% for five-year fixed rate at 65% LTV 
  • • 3.54% for five-year fixed rate at 75% LTV.

The rates for the HMO five-year, fixed-rate products have been reduced to 3.49% and 3.64% for 65% and 75% LTV, respectively.

In addition, the lender has lowered rates on its short-term let, five-year fixed offering: its 65% LTV product is available at 3.99%, while the 75% LTV product offers a 4.29% rate.

George Gee, commercial director at Foundation, said: “There’s no doubting that the Budget announcement on stamp duty has eased a number of worries about purchase completion, but it has also resulted in an increased activity impetus, particularly from landlords. 

“Landlords continue to seek out properties that can deliver strong yield — hence the focus on HMO and short-term lets — and, as a lender active in these areas, we want to ensure advisers and their clients have access to a highly competitive range, right across the BTL product space.” 

Shawbrook Bank

Shawbrook Bank has slashed rates across its commercial investment offering, with them now starting from 5.19%.

The changes impact the specialist bank’s commercial and semi-commercial variable rate products on loans over £100,000, with the biggest reduction seen to its semi-commercial offering at 65% LTV. 

Shawbrook’s commercial investment range caters for loans up to 75% LTV, between £50,000 and £25m, and is suitable for complex commercial investments, including serviced offices and property multi-lets on licences.

Gavin Seaholme, head of sales at Shawbrook Bank, commented: “The commercial investment sector has been faced with great change and uncertainty over recent months, but we remain fully committed to helping brokers maximise the abundance of opportunity that still exists. 

“We’re proud of our commercial investment offering and hope by making our rates more competitive, we send a clear signal of our continued commitment to this market.”

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