The FHL Group, parent company of Foundation Home Loans, has acquired specialist lender Catalyst Property Finance.

Catalyst will maintain its brand identity and continue to run as a separate entity with no planned operational or team changes.

The lender specialises in refurbishment loans, bridging finance, development exit finance, auction funding, commercial bridging, and specialist buy-to-let and has lent £600m since inception.

Catalyst said it will be “supercharged” by the acquisition, with a diversified funding pool enabling more product creativity and sharper pricing.

For brokers, it said the benefits will be access to more innovative product opportunities and a growing platform to support their property developer and investor clients.

Catalyst chief executive Chris Fairfax says: “Joining The FHL Group marks a significant milestone for Catalyst. From humble beginnings, our team has built a high-performing, profitable lending platform.

“With the Group’s backing, we’re now in a position to accelerate growth, expand our product range, and enhance service delivery for brokers and their clients. This partnership allows us to maintain our entrepreneurial culture while benefiting from greater funding scale and strategic support.”

Foundation Home Loans chief executive Pete Ball says: “We are delighted to welcome Catalyst to The FHL Group. The business is a strong strategic fit, complementing our core proposition and enabling us to extend our reach into new segments of the specialist finance market. Catalyst’s reputation and track record speak for themselves. Our focus will be on supporting their continued growth through increased funding diversification and long-term investment.”

The acquisition reflects The FHL Group’s ongoing commitment to broadening its footprint in specialist lending and offering intermediaries a more comprehensive range of property finance solutions.

Catalyst hired Becky Harris to the new dual role of CFO and COO in June.