Catalyst launches new refurbishment bridging product

The Refurb+ product offers facilities between £100,000 and £5m at up to 75% of OMV over loan terms from three to 24 months.

Rates start from 0.65% pm for experienced property professionals and 0.70% pm for less experienced.

Clients can roll-up interest and add monitoring costs above 75% net loan, inclusive of completion fees.

Catalyst will fund up to 100% of refurb costs in arrears and lend to a maximum 75% LTGDV.

Up to 25% expansion is allowed on residential, semi-commercial and commercial to residential conversion properties.

To keep monitoring costs as low as possible, an asset manager will not be required where the cost of works is below 10% of day one OMV and funded by the borrower (up to £50,000).

For cost of works up to 10% of day one OMV funded by Catalyst, or where the borrower or lender fund the costs of works from 10% to 50% of day one OMV, an asset manager will monitor the projects.

If the cost of works is greater than £250,000, a QS may be required.

Where borrowers self-fund the cost of works, they can apply for a further advance at practical completion, subject to not exceeding a maximum 75% LTGDV.

Chris Fairfax, CEO at Catalyst Property Finance (pictured above), said: “We understand that cashflow is incredibly important right now, so we are providing a facility that allows borrowers to maximize LTV, reduce deposit contributions and make the drawdown process faster and at a lower cost.”