Refurbishment finance

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Refurbishment Finance options for all types of projects

Our refurbishment finance products are designed to provide flexible funding for a wide range of property refurbishment projects, from light updates to more extensive transformations. Whether you’re an experienced developer or just starting, we offer tailored finance options to meet your project needs and goals.

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Comprehensive Refurbishment Finance Options

With generous terms, refurbishment finance is an ideal solution for property developers looking to enhance or expand properties while managing cash flow effectively. Our finance covers various refurbishment levels, including:

1. Light/Moderate Refurbishment: For projects with work costs up to 50% of Open Market Value (OMV) or 50% of Gross Development Value (GDV).
2. Substantial Refurbishment: For work costs ranging from 50% to 100% of OMV or GDV, ideal for larger renovation projects.
3. Extensive Refurbishment: For projects exceeding 100% of OMV and up to 50% GDV, perfect for major transformations.

Flexible Interest Rates for First Charge Loans

Our refurbishment finance includes competitive fixed monthly rates, tailored to project scope and borrower experience:

• Rates for Works up to 50% of OMV/50% GDV:
  • Retained interest starting from 0.85% for lower LTVs.
  • Rolled interest starting from 0.92%.
  • Loan sizes from £100,000 to £10 million.
• Rates for Works from 50% to 100% of OMV/50% GDV:
  • Retained interest rates from 0.89%.
  • Rolled interest rates from 0.94%.
  • Loan sizes from £200,000 to £10 million.
• Rates for Works Exceeding 100% OMV/Up to 50% GDV:
  • Retained interest rates from 0.97%.
  • Rolled interest rates from 1.04%.
  • Loan sizes from £250,000 to £10 million.

Our interest options include retained and rolled interest, giving borrowers flexibility to structure repayments in alignment with project timelines.

Who Can Apply for Refurbishment Finance?

Our finance products cater to various borrowers, including UK individuals, LTD Co/LLPs, offshore LTD companies, and trusts (case-by-case basis). Our lending criteria are adaptable to different levels of experience:

• Experienced Developers and Contractors: Up to 80% of Day 1 OMV/75% LTGDV for those with a proven track record (3 similar schemes over 5 years or 10 projects over 10 years).
• Inexperienced Developers: Funding available up to 70% of Day 1 OMV/65% LTGDV, providing opportunities for those new to development but without extensive experience.
• First-Time Developers: Considered on a case-by-case basis, enabling new developers with no prior projects to secure financing for entry-level property investments.

Loan Terms and Conditions

Our refurbishment finance offers flexibility in terms, allowing borrowers to manage their projects effectively:

• Terms: Loans are available for up to 24 months.
• Early Repayment Charges (ERCs): No ERCs, with a minimum interest period of 1 to 3 months.
• Property Types: We finance residential, semi-commercial (with over 50% residential use), and commercial-to-residential conversion projects.
• Loan Sizes: Flexible loan sizes ranging from £100,000 to £10 million.

Property-Specific Lending Criteria

Our refurbishment finance product accommodates a wide range of property types and refurbishment scopes:

• Refurbishment Requirements: For structural refurbishments, at least one original wall must remain standing throughout the project.
• Monitoring and Compliance: We can accept Asset Manager reporting on a case-by-case basis to monitor progress.
• Further Advances: Clients who self-fund works can apply for a further advance upon Practical Completion, provided they stay within the maximum 70% LTGDV limit.

Why Choose Our Refurbishment Finance?

Refurbishment finance with us offers flexibility, competitive rates, and tailored solutions to support property improvements of all sizes. Whether you’re adding value to a property before sale or transforming an asset for rental, our products provide the funding you need to bring your vision to life.

How does ‘refurbishment 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!’’

How to arrange your refurbishment 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 refurbishment 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.