Specialist lender Catalyst will enter the development finance market with a ‘stretch senior’ product.

The new product offers high leverage lending up to 95% loan to costs (LTC)including interest/75% Loan to Gross Development Value (LTGDV) with interest rates starting at 7.95%.

Catalyst managing director Chris Fairfax says: “We are very excited to launch into the development finance market. In many ways this is a natural progression for Catalyst, being an established lender of refurbishment bridging and development exit finance.

“This is a much-anticipated launch; we have listened to the UK’s leading packagers and intermediaries, asking them what they need for their property developer client base. Strong demand exists for a 95% LTC product, for residential and mixed-use schemes, combined with a competitive rate and the ‘can-do’ approach to lending my team are known for.

“For this initial launch we are focussing our lending on the South; sites in Berkshire, Bristol, Buckinghamshire, Devon, Dorset, Hampshire, Oxfordshire, Somerset, Surrey, West Sussex, and Wiltshire.  We will roll-out to the rest of the UK in the future.”