Refurbishment finance & REFURB+ Super stretch

For light and medium refurb. Rolled, serviced and retained interest options

Refurbishment finance &
REFURB+ super stretch, rolled

Are you looking for fast and flexible short term finance to improve your investment property? If you are considering undertaking light or moderate refurb, our refurbishment finance and REFURB+ options could work for you. Please see ‘Super Heavy Refurb Finance‘ if your project involves heavier refurbishment.

Lending Criteria Overview

Borrower Details

Experienced developers to 80% of Day 1 Open Market Value/75% LTGDV.
Experienced developers = 3 similar schemes over the past 5 years.
Inexperienced developers to 70% of Day 1 Open Market Value/65% LTGDV.
First time developers, LIGHT REFURB only.
UK individual or LTD Co/LLP. Offshore LTD Co.
Borrowers with a good credit history, some adverse credit may be considered by referral.
3 year UK address history.

Loan Details

Loan terms from 3 months to 24 months.
Loans 75% LTV and above to a £1m maximum loan amount.
No ERCs, 1 to 3 months minimum interest.
REFURBISHMENT FINANCE: Retained interest.
REFURB+ SUPER STRETCH: Rolled interest. Interest and any AM/QS fees can be added ‘on top’ of maximum LTV/LTGDV. Serviced interest subject to evidence of affordability.

Property Details

Properties in England and Wales.
Residential and semi-commercial; if semi-commercial, the residential element must be >50%. Commercial to residential conversion permitted.
Refurbishment finance requires at least one original wall to remain standing throughout the construction process and into the finished property.
Above 70% LTV maximum unit value £750,000, higher considered by exception.
LIGHT REFURB: Loans from £100k to £10m. Refurbishment budget or total build cost
(inclusive of professional fees) is less than or equal to 50% of OMV and less than 50% GDV and does not involve a >25% expansion of the footprint of the property, excluding loft extensions.
MODERATE REFURB: Loans from £250k to £10m. Refurbishment budget or total build cost (inclusive of professional fees) is less than or equal to 100% of OMV value, less than 50% of the GDV value, does not involve a >25% expansion of the footprint of the property, excluding loft extensions. See ‘Super heavy refurb’ on page 5 for more refurbishment options.
MONITORING: We can accept Asset Manager reporting, on a case-by-case basis.
FURTHER ADVANCE AT PC: Where clients self-fund cost of works, they can apply for a further advance at Practical Completion, subject to not exceeding maximum 70% LTGDV, including interest. Pre-further advance, an Asset Manager visit will be required.

Please see SUPER HEAVY REFURB for schemes needing higher levels of expansion/refurbishment.

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Refurbishment bridging finance has been designed to help you fund significant improvements to your property. We understand that moderate to heavy property renovations can be costlier and more time consuming than light refurbishment projects. For example, you may wish to increase the number of rooms in your property to improve the layout and increase space. Or, as a business, you may consider capitalising your venture by embarking on an improved building, with walls coming down and premises being extended.

So, when it comes to bridging finance, what exactly do we consider to be medium to heavy refurbishment? Typically, there are elements of structural change to the property and there is a need for planning permission. These types of improvement renovations often cost thousands to complete and you may require a loan to undertake the building works. But there is a solution at hand with our improvement bridging loans.

How does ‘refurbishment finance bridging’ help brokers and their borrowers? Our team share their thoughts:

Josh Hawker, Intermediary Relationship Manager, says: ‘’Our standout product is our refurbishment bridge. We can be flexible with experience levels of the client and fund up to 80% LTV and 100% of works. This is where we really make a buzz!’’

Refurbishment finance

Light/moderate refurb, retained interest

% Day 1 Open Market Value/
% of Gross Development Value		 70% OMV/
65% LTGDV		 70% OMV/
70% LTGDV		 75% OMV/
70% LTGDV		 80% OMV/ 75% LTGDV
LIGHT REFURB fixed monthly rates from: 0.90% 0.95% 0.99% 1.04%
MODERATE REFURB fixed monthly rates from: 0.99% 1.04% 1.09% N/A

REFURB+ super stretch, rolled

Up to 75% OMV/75 LTGDV + rolled interest + AM/QS fees

% Day 1 Open Market Value/
% of Gross Development Value		 70% OMV/
65% LTGDV		 70% OMV/
70% LTGDV		 75% OMV/
70% LTGDV		 80% OMV/ 75% LTGDV
LIGHT REFURB fixed monthly rates from: 0.95% 0.99% 1.04% 1.09%
MODERATE REFURB fixed monthly rates from: 1.05% 1.09% 1.15% N/A

Please note that all loans are subject to lending criteria and underwriting.

To discover how much refurbishment bridging finance you can borrow, and at what monthly rate, please contact our New Business Team or send us a message with your contact information and we will get back to you quickly with heads of terms.

We’re here to make sure you never miss an opportunity

#WeAreCatalysts

Refurbishment finance

Light/moderate refurb, retained interest

Monthly rates from:

  LIGHT MODERATE
70% OMV / 65% LTGDV 0.90% 0.99%
70% OMV / 70% LTGDV 0.95% 1.04%
75% OMV / 70% LTGDV 0.99% 1.09%
80% OMV / 75% LTGDV 1.04% N/A

REFURB+ super stretch, rolled

Up to 75% OMV/75% LTGDV + rolled interest + AM/QS fees

Monthly rates from:

  LIGHT MODERATE
70% OMV / 65% LTGDV 0.95% 1.05%
70% OMV / 70% LTGDV 0.99% 1.09%
75% OMV / 70% LTGDV 1.04% 1.15%
80% OMV / 75% LTGDV 1.09% N/A

REFURB

Please note that all loans are subject to lending criteria and underwriting.

To discover how much bridging finance you can borrow, and at what monthly rate, please contact our New Business Team or send us a message with your contact information and we will get back to you quickly with heads of terms.

We’re here to make sure you never miss an opportunity #WeAreCatalysts

How to arrange your improvement bridging loan
Call our bridging finance team on 01202 112 900, they will assess your improvement bridging loan enquiry and quickly respond with a lending decision. They can offer terms up to 24 months and loans up to £10 million, all lending is subject to underwriting.

As a bridging loan company, Catalyst accepts borrowers who are aged between 21 and 85 at the end of the loan term.

The benefit of using an improvement bridging loan is that you can access the funds immediately, allowing you to start your renovations quickly. This is much more instantaneous than a mortgage loan, which could take days, weeks or even months to come through.

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